The Binance v. U.S. SEC lawsuit is being dismissed with the support of the Chamber of Digital Commerce, other associations and businesses involved in digital assets, law firms, and legislators. The SEC’s attempt to regulate the cryptocurrency business without permission from the US Congress is being opposed by the world’s largest trade group for blockchain technology.
Court Ruling of 19th October
As per the latest developments, during the court ruling on October 19, the Chamber of Digital Commerce submitted an amicus brief in favor of the SEC lawsuit’s defendants, CEO Changpeng “CZ” Zhao and Binance, Binance.US, and other defendants.
The Chamber of Digital Commerce argues that the SEC’s attempt to regulate the cryptocurrency industry without proper authorization from Congress sets a concerning precedent for innovation and technological advancements. They believe the regulatory framework should be established collaboratively, involving all relevant stakeholders, including industry experts, law firms, and legislators.
Amicus Brief Filed By Chamber of Digital Commerce
The Chamber’s amicus brief highlights the importance of ensuring fair and transparent regulations that foster growth and protect investors in the rapidly evolving cryptocurrency market.
“The SEC continues to try to regulate the entire digital asset ecosystem through enforcement actions, instead of issuing guidance or going through the proper notice and comment rulemaking channels … The market is paralyzed by the enforcement operations, which are also driving innovation in digital assets elsewhere,” said Cody Carbone, vice president of policy at the Chamber of Digital Commerce.
The Chamber of Digital Commerce claims the SEC labels digital assets as securities and punishes cryptocurrency firms by employing the regulation-by-enforcement strategy. The SEC’s strategy stifles innovation and compels cryptocurrency companies to relocate elsewhere.
Chamber Of Digital Commerce Criticices SEC’s Regulatory Approach
This regulatory approach not only hampers the growth of the digital asset market within the United States but also puts the country at a disadvantage in attracting investment and fostering technological advancements. The Chamber of Digital Commerce urges the SEC to adopt a more proactive and collaborative approach that promotes responsible innovation while ensuring investor protection.
Additionally, the SEC lacks authorization from the US Congress to regulate all digital assets as securities. The SEC’s actions put the sector and its stakeholders in danger, even while the legislative authorities struggle to create a regulatory framework.
The Chamber of Digital Commerce requests that the complaint be dismissed because the SEC acted outside of its authority, that assets are not investment contracts. That token transactions are not subject to the Exchange Act Registration Requirements.
Binance.US criticises the SEC
Together with Binance Holdings and CEO CZ, Binance.US filed a motion to dismiss the case because the SEC had exceeded its authority. The SEC’s most recent requests for document discovery and depositions, according to Binance.US, are “unreasonable.”
BAM Management US Holdings and BAM Trading Services (Binance.US) submitted a petition to submit papers under seal. Although the specifics remain confidential, Binance.US provides the SEC with the final paperwork.
This suggests that Binance.US is somewhat cooperating with the SEC despite its claims that the SEC is exceeding its authority. It remains to be seen how the court will respond to Binance.US’s motion to dismiss and whether the SEC’s requests for document discovery and depositions will be deemed reasonable.
