U.S. Chamber of Digital Commerce Supports Binance, Questions SEC’s Authority
The U.S. Chamber of Digital Commerce, a leading crypto advocacy group, has filed an amicus brief urging the U.S. Securities and Exchange Commission (SEC) to dismiss its lawsuit against Binance, the world’s largest cryptocurrency exchange by trade volume. The Chamber argues that the SEC should not overreach its authority and extend securities law into areas unrelated to securities markets, as it could have unintended consequences for various sectors of the U.S. economy.
The Nature of Tokens
The Chamber emphasizes that while tokens associated with “investment contracts” fall under the SEC’s purview, many tokens should not be classified as securities once decoupled from their initial investment promise. They argue that transactions involving such tokens are simply asset sales, similar to a grocery store selling fruit or an online marketplace like Amazon.
Citing Recent Court Decisions
The Chamber highlights recent court decisions where tokens were not deemed investment contracts, including the Ripple case. They suggest that the subject of an investment contract is not inherently a security. However, institutional sales of XRP are still contested in the Ripple case.
Call for Regulatory Framework and Congressional Guidance
The Chamber stresses the need for a transparent regulatory framework for digital assets and echoes the sentiment of Senator Cynthia Lummis in calling for unambiguous guidance from Congress. They also raise concerns about the SEC potentially exceeding its authorized limits and urge courts to ensure that its actions align with congressional intentions.
Plea for Dismissal of SEC’s Case Against Binance
The Chamber firmly advocates for the dismissal of the SEC’s case against Binance, stating that the exchange’s actions do not warrant the charges brought against it.
Hot Take: U.S. Chamber of Digital Commerce Challenges SEC’s Lawsuit Against Binance
The U.S. Chamber of Digital Commerce has taken a stand in support of Binance, urging the SEC to dismiss its lawsuit against the cryptocurrency exchange. The Chamber questions the SEC’s authority and argues that extending securities law beyond its intended scope could have negative consequences for the U.S. economy. By highlighting recent court decisions and emphasizing the need for a clear regulatory framework, the Chamber calls for congressional guidance and transparent rules for digital assets. Ultimately, they assert that Binance’s actions do not warrant the charges brought against it. This amicus brief adds another voice to the ongoing debate over the SEC’s jurisdiction in the crypto industry.
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