The Chamber of Digital Commerce Joins Effort to Challenge SEC Lawsuit Against Binance
The Chamber of Digital Commerce, based in the United States, has partnered with various digital assets firms, associations, legal experts, and legislators to collectively challenge the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Binance. In an amicus brief filed recently, the advocacy group aims to prevent the SEC from regulating the cryptocurrency sector without explicit authorization from Congress and to stop its enforcement-based method of regulation.
The Chamber argues that the SEC’s approach of classifying digital assets as securities and penalizing crypto businesses through enforcement actions stifles innovation and forces companies to move overseas. It also contends that the SEC lacks congressional authority to oversee all digital assets as securities, creating risks for the industry and its stakeholders.
The organization has requested the court to dismiss the lawsuit on various grounds, including the SEC exceeding its jurisdiction and digital assets not meeting investment contract criteria or Exchange Act registration requirements.
Binance.US Asserts SEC Has Exceeded Jurisdiction
Binance.US, along with Binance Holdings and CEO Changpeng Zhao, has recently submitted a motion to dismiss the SEC lawsuit, claiming that the SEC has overstepped its jurisdiction. Binance.US has criticized the SEC’s document discovery and deposition requests as unreasonable. Attorneys for BAM Trading Services, which operates Binance.US, have also filed sealed documents opposing the SEC’s request for additional details.
Hot Take: Chamber of Digital Commerce Fights Against SEC’s Enforcement-Based Regulation
The Chamber of Digital Commerce is taking a stand against the U.S. Securities and Exchange Commission’s enforcement-based regulation approach in its lawsuit against Binance. The organization argues that this method stifles innovation in the cryptocurrency industry and pushes companies to relocate abroad. By challenging the SEC’s jurisdiction and authority, the Chamber seeks to protect the industry and its stakeholders from regulatory risks. The partnership between digital assets firms, associations, legal experts, and legislators highlights the collective effort to challenge the SEC’s actions and establish a more transparent and supportive regulatory framework for the crypto sector.
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