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The association of blockchain and cryptocurrency trading, the Digital Commerce Chamber, followed the steps of many other crypto companies, associations, and law firms by submitting an amicus brief to support Binance in the case against the U.S. Securities and Exchange Commission (SEC) for the dismissal of the lawsuit. The Digital Commerce Chamber aims to put an end to the SEC’s attempt to regulate the crypto industry without obtaining authority from the U.S. Congress and to stop the regulatory attempt through sanctions.
Digital Commerce Chamber Supports Binance in the Binance-SEC Lawsuit
The victories of Ripple in the lawsuit filed by the SEC alleging that it violated securities laws with its XRP sales have put the U.S. federal regulator in a difficult position, weakening its position. A significant development also occurred in the Binance case, which is one of the most important lawsuits against the crypto sector opened by the SEC. On October 19, the Digital Commerce Chamber submitted an amicus brief supporting defendants Binance, Binance.US, and CEO Changpeng Zhao for the dismissal of the lawsuit filed by the SEC against Binance. Cody Carbone, Deputy Policy Director of the Digital Commerce Chamber, commented on the submitted amicus brief as follows:
Instead of following the ways to make rules through guidance or providing appropriate feedback and comments, the SEC continues to try to regulate the entire crypto sector through sanctions. The enforcement actions are paralyzing the crypto sector and pushing crypto innovation to overseas countries.
According to the Digital Commerce Chamber, the SEC classifies cryptocurrencies as securities and uses enforcement to regulate crypto companies. The approach of the SEC hinders innovation and forces crypto companies to move to overseas countries. Furthermore, the Digital Commerce Chamber added that the SEC does not have the authority to regulate cryptocurrencies as securities without obtaining it from the U.S. Congress, and while legislative bodies are seeking regulatory frameworks, the actions of the SEC put the market and stakeholders at risk.
The Digital Commerce Chamber requested the dismissal of the lawsuit by claiming that the SEC acted beyond its jurisdiction, assets are not securities, and crypto transactions are not subject to the requirements of the Securities Exchange Act.
Binance’s U.S. Branch Binance.US Challenges the SEC
Binance and CEO Zhao, along with Binance.US, previously requested the dismissal of the lawsuit, claiming that the SEC exceeded its jurisdiction. Binance.US recently stated that the SEC’s latest requests regarding document discovery and depositions are unreasonable.
BAM Management US Holdings (Binance) and BAM Trading Services (Binance.US) requested permission to submit sealed documents. While details of the defense remain confidential, it can be seen that Binance.US has shared the remaining documents with the SEC.
