Chamber of Digital Commerce opposes SEC’s overreach in Binance lawsuit

America-based Chamber of Digital Commerce has aligned with varied digital belongings companies, associations, authorized specialists and legislators in a collective effort to problem the U.S. Securities and Exchange Commission (SEC) vs. Binance lawsuit.

According to a lately filed amicus transient, the advocacy group additionally seeks to thwart the SEC’s try and oversee the cryptocurrency sector with out express authorization from the U.S. Congress and halt the SEC’s technique of regulation via enforcement.

Cody Carbone, vp of coverage on the Chamber of Digital Commerce, stated:

“The SEC continues to attempt to regulate all the digital asset ecosystem via enforcement actions, as a substitute of issuing steering or going via the correct discover and remark rulemaking channels. The enforcement actions are paralyzing the market and sending digital asset innovation abroad.”

The group argues that the SEC employs the enforcement-based technique to categorise digital belongings as securities and impose penalties on cryptocurrency companies. It claims this method hampers innovation and compels crypto firms to relocate overseas.

Moreover, the Chamber states that the SEC lacks the congressional authority to supervise all digital belongings as securities. Whereas legislative our bodies endeavor to determine a regulatory framework, the SEC’s actions pose dangers to the trade and its stakeholders, it acknowledged.

The group has appealed to the courtroom for the dismissal of the lawsuit based mostly on varied claims, such because the SEC exceeding its jurisdiction, digital belongings not constituting funding contracts and token transactions not assembly the standards for Alternate Act registration necessities.

Associated: Chamber of Digital Commerce launches Digital Power Network miners’ coalition

Binance.US, together with Binance Holdings and Binance CEO Changpeng Zhao, lately submitted a motion to dismiss the lawsuit, asserting that the SEC has exceeded its jurisdiction. Binance.US has additionally criticized the SEC’s current doc discovery and deposition requests as “unreasonable.“

On Sept. 12, attorneys for BAM Buying and selling Companies, which operates the Binance.US cryptocurrency alternate, filed sealed paperwork in opposition to the SEC looking for further particulars from Binance.US.

Journal: Crypto regulation: Does SEC Chair Gary Gensler have the final say?