Binance Receives Support from Crypto Industry in Legal Battle Against SEC
As the trial of Sam Bankman-Fried approaches, the digital-asset industry is rallying behind Binance in its legal dispute with the US government. Stablecoin issuer Circle Internet Financial and crypto investment fund Paradigm Operations have filed submissions arguing that the Securities and Exchange Commission (SEC) exceeded its authority when it charged Binance with various offenses. The SEC alleges that Binance engaged in deceptive practices and evaded the law. Binance has expressed disappointment with the complaint and claims to have negotiated in good faith with the SEC. Paradigm has filed an amicus brief supporting Binance’s motion to dismiss the case, criticizing the SEC’s inconsistent approach to regulating cryptoassets.
Circle, which issues the USDC stablecoin and is partially owned by Binance competitor Coinbase, submitted a motion of “support of neither party” to protest the SEC’s treatment of Binance’s BUSD stablecoin as an unregistered security. Circle argues that this enforcement action sets a precedent for other stablecoin issuers and could have significant implications for the digital-asset ecosystem and the US economy. Meanwhile, crypto industry leaders like Brian Armstrong and Mike Novogratz have been advocating for the industry’s importance on Capitol Hill. Coinbase is also mobilizing crypto owners to support the industry ahead of the 2024 US elections.
Hot Take: Crypto Industry Unites Against SEC in Support of Binance
The digital-asset industry is standing together in solidarity with Binance as it faces legal challenges from the Securities and Exchange Commission (SEC). Stablecoin issuer Circle Internet Financial and crypto investment fund Paradigm Operations have come forward to argue that the SEC has overstepped its authority in pursuing charges against Binance. This united front demonstrates a growing resistance to what many perceive as inconsistent regulation of the crypto industry. The outcome of Binance’s case could have far-reaching consequences for stablecoin issuers and the broader digital-asset ecosystem. As the trial date approaches, the industry is making a concerted effort to advocate for its importance to the US economy and fight against government actions that hinder innovation and growth.
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