A concerted effort is underway to defend against the lawsuit filed by the United States Securities and Exchange Commission (SEC) against Binance. This lawsuit, rooted in allegations dating back to at least July 2017, claims that Binance, under the stewardship of CEO Changpeng Zhao, operated as unregistered exchanges, brokers, dealers, and clearing agencies, thereby generating substantial revenue primarily from transaction fees from U.S. customers1. In light of these allegations, the Chamber of Digital Commerce, headquartered in the United States, has mobilized alongside a myriad of other businesses, groups, legal experts, and politicians to challenge the SEC’s lawsuit.
The core of this collective resistance is captured in a recent amicus brief. The document articulates a dual objective: firstly, to challenge the SEC’s mode of regulation through enforcement, and secondly, to halt the SEC’s initiative to regulate the cryptocurrency sector without explicit authorization from the United States Congress. The amicus brief underscores a broader industry sentiment concerning the SEC’s jurisdiction over digital assets, positing that the SEC lacks the necessary legislative mandate to classify all digital assets as securities.
Pivoting on this argument, the Chamber of Digital Commerce has petitioned the court to dismiss the SEC’s case against Binance. The grounds for dismissal underscore the SEC’s alleged overreach, the assertion that digital assets do not constitute investment contracts, and the claim that token transactions do not meet the Exchange Act registration requisites. This motion resonates with the stance of Binance.US, Binance Holdings, and CEO Changpeng Zhao, who have jointly filed a motion to dismiss the lawsuit, contending that the SEC has overstepped its authoritative boundaries.
Furthermore, Binance.US has voiced its concerns regarding the SEC’s latest requests for document discovery and depositions, denouncing them as unreasonable. This stance was fortified when Binance.US, a cryptocurrency exchange based in the United States, formally objected to the SEC’s request for additional information, submitting the necessary documentation to express its dissent.
The collaborative endeavor spearheaded by the Chamber of Digital Commerce not only signifies a robust defense against the SEC’s lawsuit but also underscores a broader industry pushback against the SEC’s regulatory approach towards the burgeoning cryptocurrency sector. This collaborative resistance illuminates the ongoing tension between regulatory authorities and cryptocurrency entities, a dynamic that continues to evolve amidst the unfolding legal discourse surrounding Binance.US.
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