The Chamber of Digital Commerce in the United States has joined forces with digital asset firms, legal authorities, and legislators to challenge the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Binance.
This collaborative effort involves filing a legal document that questions the SEC’s regulatory approach to the cryptocurrency sector, emphasizing the lack of explicit approval from Congress and the heavy reliance on enforcement actions.
Concerns Over SEC Following a Strict Approach
Cody Carbone, Vice President of Policy at the Chamber of Digital Commerce, expressed concerns about the SEC’s strict enforcement approach, highlighting its adverse impact on the crypto market and its tendency to drive innovation elsewhere. Carbone contends that the SEC’s focus on enforcement actions is paralyzing the market and causing digital asset innovation to move abroad.
Further, Cody Carbone stated,
“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.”
Challenges to SEC Authority
The Chamber of Digital Commerce also argues that the SEC lacks the authority to classify all digital assets as securities and is advocating for the lawsuit’s dismissal.
Meanwhile, Binance entities and CEO Changpeng Zhao are resisting the SEC lawsuit, asserting that the SEC’s actions go beyond their jurisdiction. Their legal team is also opposing what they consider overly intrusive information requests.
Growing Concern Over Regulatory Approach
The collaboration between the Chamber of Digital Commerce and industry stakeholders also signals a mounting concern over the SEC’s regulatory approach to cryptocurrencies.
Lastly, many within the industry believe that this approach is stifling innovation, and also advocate for a reevaluation of the SEC’s stance on cryptocurrency regulation.