The Chamber of Digital Commerce works in collaboration with various digital asset companies, associations, legal firms, and legislators to address the ongoing lawsuit between Binance and the U.S. SEC. Being a leading global blockchain trade association, its primary objective is to oppose the SEC’s attempt to regulate the cryptocurrency sector without proper authorization from the U.S. Congress. This approach effectively counters the SEC’s enforcement-based regulatory strategy.
According to a court filing, the Chamber of Digital Commerce submitted an amicus brief on Oct 19. This filing endorses the dismissal of the SEC lawsuit against defendants Binance, Binance.US, and CEO Changpeng “CZ” Zhao.
VP of policy at the Chamber of Digital Commerce, Cody Carbone, expressed his opinion on the SEC’s approach to regulating the digital asset ecosystem. According to Carbone, relying solely on enforcement actions instead of providing guidance or utilizing proper rulemaking channels is causing market paralysis and causing innovative digital asset opportunities to move overseas.
The Chamber of Digital Commerce argues that the SEC employs a regulation-through-enforcement strategy. This strategy involves classifying digital assets as securities and imposing penalties on cryptocurrency enterprises. Such an approach by the SEC is believed to hinder innovation and force crypto companies to relocate abroad.
Binance.US & BAM Management’s Legal Maneuvers In SEC Lawsuit
Additionally, the SEC’s authority to classify all digital assets as securities solely through the mandate of the U.S. Congress is lacking. While legislative bodies strive to establish a regulatory framework, the actions taken by the SEC could potentially pose risks to both the industry and its stakeholders.
The Chamber of Digital Commerce has urged the court to dismiss the lawsuit for several reasons. Firstly, they argue that the SEC has gone beyond its jurisdiction. Secondly, they assert that the assets in question do not meet the criteria for investment contracts. Lastly, they contend that token transactions should not be subjected to the registration requirements outlined in the Exchange Act.
Binance.US, together with Binance Holdings and CEO CZ, has filed a motion seeking the dismissal of the lawsuit. They argue that the SEC has gone beyond its jurisdiction. Additionally, Binance.US has expressed concerns about what they view as ‘unreasonable’ demands from the SEC for document disclosure and depositions.
BAM Management US Holdings and BAM Trading Services (Binance.US) have made a formal request to file confidential documents under seal. While the specific contents remain undisclosed, it seems that Binance.US is now disclosing the remaining documents to the SEC.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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