SEC Shouldn’t Fix Crypto’s Regulatory Gap, Paradigm Says

Venture capital firm Paradigm has accused the United States Securities and Exchange Commission (SEC) of overstepping its authority to regulate cryptocurrencies. The company outlined its arguments in an amicus brief as part of a lawsuit between the SEC and cryptocurrency exchange Binance.

“Regulatory gaps exist in crypto, as the chairman himself has admitted in the past — only Congress can fill these gaps, not the SEC,” the statement said.

Paradigm is accused of crossing SEC boundaries

In an amicus brief filed in the US SEC's lawsuit against cryptocurrency exchange Binance, Paradigm expressed the SEC's concerns about cryptocurrencies.

“That unusual and overbroad construction of securities laws threatens the growth of crypto technology in the United States and could undermine other important markets that are widely recognized as outside the SEC's jurisdiction.”

In its amicus brief, Paradigm noted that it has an interest in ensuring that the securities laws are properly interpreted. It explains its purpose of ensuring neutrality, and the SEC has not overstepped its authority.

“Here and in other cases, the SEC has acted beyond its statutory authority.”

Additionally, he explains that his purpose in acting as amicus is to prevent the SEC's regulatory overreach from stifling American innovation.

Additionally, it aims to prevent the SEC from obstructing Congress by establishing a strong framework for regulating cryptocurrency assets.

More recently, there have been growing concerns that the SEC's actions will stifle innovation.

Fear of the SEC is stifling American innovation.

In a recent interview, Ripple founder Chris Larson expressed his belief that the US has lost its leadership position in the blockchain industry.

Larson pointed to a perceived technological lag in the industry. He further said that it is due to the strict policies implemented by the current US President Joe Biden administration.

Meanwhile, Ethereum founder Joseph Lubin has a positive prediction for the future of crypto regulations in the US.

Lubin says that decentralized protocols, similar to the Internet, fit well with mainstream US philosophies.