The Chamber of Digital Commerce has united with various digital assets firms, associations, legal experts, and legislators to contest the U.S. Securities and Exchange Commission (SEC) in its lawsuit against Binance. In a recent amicus brief, the prominent blockchain trade association aims to disrupt the SEC’s attempt to regulate the cryptocurrency sector without clear authorization from Congress and put a stop to the agency’s enforcement-based method of regulation.
Cody Carbone, the Vice President of Policy at the Chamber of Digital Commerce, criticized the SEC’s approach, stating that it has been trying to regulate the entire digital asset ecosystem through enforcement actions rather than providing guidance or following proper rulemaking channels.
The Chamber argues that the SEC’s enforcement-based classification of digital assets as securities and subsequent penalties imposed on cryptocurrency businesses hinder innovation and force these companies to relocate outside the United States. They further assert that the SEC does not possess the congressional authority to oversee all digital assets as securities.
While legislative bodies are actively working on establishing a regulatory framework, the Chamber believes that the SEC’s actions pose risks to the industry and its stakeholders. In its amicus brief, the Chamber of Digital Commerce calls for the dismissal of the lawsuit, citing several claims, including:
- The SEC has exceeded its jurisdiction
- Digital assets do not constitute investment contracts
- Token transactions do not meet the criteria for Exchange Act registration requirements
Binance.US, along with Binance Holdings and CEO CZ, has also filed a motion to dismiss the lawsuit, asserting that the SEC has overstepped its jurisdiction. Binance.US criticizes the SEC’s recent document discovery and deposition requests as “unreasonable” and requests permission to submit confidential documents to support their case. While the specifics of these documents remain confidential, it appears that Binance.US is cooperating with the SEC to some extent while defending against the lawsuit.
In June, the SEC sued Binance and its CEO for their “blatant disregard of the federal securities laws,” unveiling 13 charges against the platform, including operating an unregistered exchange. The agency accused Binance of offering unregistered securities to the general public, including its BNB token and BUSD stablecoin. Other charges levied against Binance by the SEC included the company’s failure to register as a broker and as an exchange.
