The US Chamber of Digital Commerce Backs Binance Against SEC
The US Chamber of Digital Commerce, a crypto advocacy group, has shown support for Binance in its legal battle against the US Securities and Exchange Commission (SEC). Earlier this year, the SEC charged Binance’s American affiliate with several securities violations. In an amicus brief filed by the group on Thursday, they argue that the SEC’s actions are hindering financial innovation and pushing crypto startups out of the United States. The group also criticizes the SEC’s flawed analysis of crypto assets.
The Mischaracterization of Tokens as Securities
In their brief, the US Chamber of Digital Commerce compares Binance to a grocery store selling oranges or an online marketplace like Amazon. They assert that tokens themselves are not securities and that platforms where tokens are bought and sold are not securities exchanges. This challenges the SEC’s claim that certain tokens listed by Binance, including BNB, BUSD, Solana, Cardano, and Polygon, are unregistered securities.
SEC Crackdown on Crypto Companies
Under the leadership of Chair Gary Gensler, the SEC has taken numerous enforcement actions against digital asset companies. Major exchanges like Binance, Coinbase, and Kraken have faced allegations of violating securities laws by offering unregistered products and listing non-compliant coins. These companies argue that there is a lack of clear guidelines from the SEC regarding which cryptocurrencies qualify as securities.
The Flawed Approach of the SEC
The US Chamber of Digital Commerce points out that the SEC fails to distinguish between “the subject of an investment-contract security” and “the investment contract itself.” This leads to incorrect labeling of many crypto tokens as unregistered securities. The group accuses the SEC of adopting a regulation-by-enforcement approach and penalizing businesses for not obtaining registrations that are not available to them.
Hot Take: SEC’s Regulatory Environment Threatens Crypto Innovation
The support of the US Chamber of Digital Commerce for Binance highlights the growing tension between crypto companies and regulatory bodies like the SEC. The advocacy group argues that the SEC’s actions stifle financial innovation and drive crypto startups away from the United States. The ongoing legal battle between Binance and the SEC will likely have significant implications for the regulation of cryptocurrencies in the country.
Source: https://decrypt.co/1234567890
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