The Chamber of Digital Commerce Joins Effort to Challenge SEC Lawsuit Against Binance

The US-based Chamber of Digital Commerce has recently joined a collective effort to challenge the lawsuit between the Securities and Exchange Commission (SEC) and Binance, a major cryptocurrency exchange. The advocacy group aims to prevent the SEC from overseeing the cryptocurrency industry without proper authorization from the US Congress.

Tokens are Not Considered Securities

The Chamber of Digital Commerce has appealed to the court to dismiss the SEC’s lawsuit against Binance. They argue that the SEC has exceeded its jurisdiction and that digital assets that do not qualify as investment contracts should not be subject to registration requirements under the Exchange Act. In their amicus brief, they compare the SEC’s actions to prosecuting a grocery store or an online marketplace, stating that tokens alone are not securities and the markets where they are traded are not securities exchanges.

Exceeding Regulatory Authority

In a filing with the US District Court for the District of Columbia on September 21, Binance Holdings and its CEO, Changpeng Zhao, claimed that the SEC had exceeded its jurisdiction in the case against them. The petition argued that the SEC failed to provide clear guidance to the industry before taking legal action, resulting in retroactive regulatory authority over the cryptocurrency sector.

It is important to note that the content provided here is a rephrased version of the original text and does not reflect the opinions of the rephraser. For the original content, please refer to the provided source.