Chamber of Digital Commerce Takes On SEC Over Binance Lawsuit to Protect Crypto Innovation
Summary:
The Chamber of Digital Commerce, together with various digital asset organizations, legal authorities, and lawmakers, is uniting to challenge the SEC's lawsuit against Binance. Insinuating the SEC's overreach of its jurisdiction and unnecessary punitive approach, the Chamber brings into question the SEC's way of enforcing regulations in the cryptocurrency sector. They call for the lawsuit's dismissal, claiming it's affecting market growth and driving crypto companies to relocate overseas. Both Binance.US and BAM Management US Holdings have pursued motions for the lawsuit's dismissal and the submission of confidential documents, respectively.
In a united bid to confront the ongoing lawsuit between Binance and the U.S. SEC (Securities and Exchange Commission), the Chamber of Digital Commerce has teamed up with diverse digital asset corporations, associations, and legal experts. The leading blockchain trade group, via a recently lodged amicus brief, aims to inhibit the SEC's perceived attempts to regulate cryptocurrencies without explicit consent from the U.S. Congress, thus blocking the SEC's strategy to regulate by way of punitive measures.
Cody Carbone, Chamber of Digital Commerce's Vice President of Policy, voiced concern over the SEC's regulatory actions, arguing they inhibit market growth and drive away digital innovation to overseas markets.
The Chamber of Digital Commerce critiques the SEC's regulatory method - using enforcement actions as a basis to categorize digital assets as securities and impose penalties on cryptocurrency businesses. This approach not only impedes technological advancement but also forces crypto firms to set up operations abroad.
Moreover, the Chamber maintains that the SEC does not have the constitutional power to regulate all digital assets as securities. With regulatory frameworks being established by legislative bodies, the SEC's actions pose threats to the sector and those associated with it, the Chamber mentions in its brief.
In a plea to the court, the Chamber of Digital Commerce calls for the dismissal of the lawsuit, making various assertions like the SEC's overreach of its authority, denial of digital assets being investment contracts, and token transactions not aligning with Exchange Act registration requisites.
Binance.US, along with Binance Holdings and CEO CZ, has formally filed a motion for the lawsuit's dismissal, arguing the SEC's overextension of its mandate. Binance.US also expressed its discontent with the SEC's recent call for document discovery and depositions, terming it as 'unreasonable'.
BAM Management US Holdings and BAM Trading Services (Binance.US) have applied for the submission of classified documents. Although confidential, this indicates Binance.US is sharing certain documents with the SEC.
Published At
10/20/2023 12:13:45 PM
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