The Digital Chamber of Commerce opposes the SEC’s overreach in the Binance case

The Digital Chamber of Commerce in the United States has partnered with various digital asset organizations, associations, lawyers and legislators in a joint effort to challenge the US Securities and Exchange Commission (SEC) and Binance's lawsuit.

According to a recent amicus brief, the advocacy group seeks to thwart the SEC's attempts to regulate the cryptocurrency sector without express authorization from the US Congress and to end the SEC's enforcement mechanism.

Cody Carbone, vice president of policy at the Digital Chamber of Commerce, said:

“The SEC continues to attempt to regulate the entire digital asset ecosystem through enforcement actions rather than providing guidance or going through the appropriate legislative channels of notice and comment. Its enforcement action is crippling the market and outsourcing digital asset innovation.”

The organization argues that the SEC will use an enforcement-oriented approach to classify digital assets as securities and impose penalties on cryptocurrency businesses. He says this approach stifles innovation and forces crypto companies to relocate abroad.

Additionally, the House states that the SEC does not have congressional authority to regulate all digital assets as securities. As lawmakers strive to establish a regulatory framework, the SEC's actions pose concerns to the industry and stakeholders, he said.

The company appealed to the court to reject the lawsuit based on various claims, such as the SEC exceeding its jurisdiction, transactions that do not constitute investment contracts of digital assets and that do not meet the registration requirements of the Exchange Act.

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Binance.US, along with Binance Holdings and Binance CEO Changpeng Zhao, recently filed a motion to dismiss the lawsuit, asserting that the SEC is beyond its jurisdiction. Binance.US has criticized the SEC's recent document discovery and deposition requests as “unreasonable.”

On September 12, lawyers for BAM Trading Services, which operates the Binance.US cryptocurrency exchange, filed sealed documents with the SEC seeking more details from Binance.US.

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