The Chamber of Digital Commerce has submitted a legal document, called an amicus brief, to back Binance, Binance.US, and their CEO Changpeng “CZ” Zhao. The purpose is to seek the dismissal of the SEC lawsuit against them.
The Chamber of Digital Commerce, along with various digital asset companies, law firms, lawmakers, and associations, is working collectively to dismiss the lawsuit between Binance and the U.S. SEC. The objective is to put an end to the SEC’s effort to regulate the cryptocurrency industry without proper authority from the U.S. Congress. This is an attempt to prevent the SEC from enforcing regulations without the appropriate legal basis.
Chamber of Digital Commerce Supports Binance in SEC Case
The Chamber of Digital Commerce has submitted a legal document, known as an amicus brief, to support Binance, Binance.US, and their CEO Changpeng “CZ” Zhao in their bid to have the SEC lawsuit against them dismissed. Cody Carbone, the VP of policy at the Chamber of Digital Commerce, expressed concerns about the SEC’s method of attempting to regulate the digital asset ecosystem through enforcement actions, rather than providing guidance or following the proper rulemaking channels. This approach, in their view, is causing market paralysis and driving digital asset innovation to overseas markets.
The Chamber of Digital Commerce contends that the SEC’s strategy of categorizing digital assets as securities and penalizing crypto businesses through enforcement actions hinders innovation and forces crypto companies to relocate internationally.
Additionally, they argue that the SEC lacks the authority to label all digital assets as securities without Congress’s approval. While legislative bodies work on creating a regulatory framework, the SEC’s actions pose risks to the industry and its stakeholders.
The Chamber of Digital Commerce is urging the court to dismiss the lawsuit, citing reasons such as the SEC overstepping its jurisdiction, digital assets not constituting investment contracts, and token transactions not falling under the Exchange Act Registration requirements.
Binance.US Takes on SEC
Binance.US, along with Binance Holdings and CEO CZ, has submitted a request to have the lawsuit against them dismissed, asserting that the SEC has exceeded its legal authority. Binance.US has expressed dissatisfaction with the SEC’s recent demands for document disclosure and depositions, deeming them “unreasonable.”
In response, BAM Management US Holdings and BAM Trading Services (Binance.US) have filed a motion to present certain documents under seal. Although the specific details of these documents are confidential, it appears that Binance.US is cooperating by sharing the remaining documents with the SEC.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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