A crypto lobby group has filed a petition in court in favor of Binance in the exchange’s lawsuit with the US Securities and Exchange Commission (SEC).
In an amicus brief filed yesterday, the Chamber of Digital Commerce told the U.S. District Court of Columbia that the U.S., once a haven for new technology, is crowding out crypto and blockchain technology.
“Now, however, one of the newest frontiers of the digital economy – the trillion-dollar blockchain economy – is conspicuously avoiding the United States, finding the regulatory environment too opaque and hostile to do business here…
However, this promising industry is unfortunately developing primarily offshore, largely because the SEC has adopted a regulation-by-enforcement approach, arbitrarily categorizing various blockchain-based digital assets as securities and penalizing companies for failing to obtain SEC registrations which are not. actually available to them.”
An amicus brief is a legal document filed with an appellate court by a party not involved in a case. These letters are written by “friends of the court” and contain additional information or arguments to assist the court in making its decision.
In the case of the SEC versus Binance, the Chamber of Digital Commerce states that the SEC’s charges are akin to suing a supermarket for selling oranges, while comparing Binance to e-commerce giant Amazon.
“By filing a case against the defendants here, the SEC is suing the equivalent of a supermarket that sells oranges and other fruits, or an online e-commerce marketplace, like Amazon.
Tokens alone are not securities, and the markets where they are available to buy and sell are not stock exchanges. Whether or not a token was initially sold as part of an ‘investment contract’ is immaterial consequence.”
The SEC sued Binance in June, alleging that the largest crypto exchange platform by volume offered unregistered securities. At the time, the SEC alleged that Binance and CEO Changpeng Zhao profited billions of dollars while ignoring customer security protocols. Last month, the SEC accused Binance of withholding information during the discovery phase of the lawsuit.
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Featured image: Shutterstock/New Energy