The Chamber of Digital Commerce has aligned with various digital assets firms, associations, legal experts and legislators in a collective effort to challenge the Binance vs. U.S. SEC lawsuit.
The blockchain trade association through the recently filed amicus brief seeks to thwart the SEC’s endeavor to oversee the cryptocurrency sector without explicit authorization from the U.S. Congress, halting the SEC’s method of regulation through enforcement actions.
As stated by Cody Carbone, the Vice President of Policy at the Chamber of Digital Commerce:
“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 enforcement actions are paralyzing the market and sending digital asset innovation overseas.”
The Chamber of Digital Commerce asserts that the SEC employs the enforcement-based method to classify digital assets as securities and impose penalties on cryptocurrency businesses. This approach not only hampers innovation but also compels crypto companies to relocate abroad.
Furthermore, the Chamber states, the SEC lacks the congressional authority to oversee all digital assets as securities. While legislative bodies endeavor to establish a regulatory framework, the SEC’s actions pose risks to the industry and its stakeholders, it wrote.
The Chamber of Digital Commerce appealed to the court for the dismissal of the lawsuit based on various claims, such as the SEC exceeding its jurisdiction, digital assets not constituting investment contracts and token transactions not meeting the criteria for Exchange Act registration requirements.
Binance.US, along with Binance Holdings and CEO CZ, submitted a motion to dismiss the lawsuit, asserting that the SEC has exceeded its jurisdiction. Binance.US has also criticized the SEC’s recent document discovery and deposition requests as “unreasonable.”
BAM Management US Holdings and BAM Trading Services (Binance.US) have requested permission to submit confidential documents. While the specifics are kept confidential, it appears that Binance.US is sharing certain documents with the SEC.