Oct. 18, 2023 – The Chamber of Digital Commerce, the world’s leading digital asset and blockchain trade association, has submitted an Amicus Brief in the ongoing case between the Securities and Exchange Commission (SEC) and Binance.US. Our brief aims to assist the Court in critically evaluating the legal merits of the SEC’s allegations while advocating for a more transparent regulatory approach challenging the SEC’s aggressive tactics which lack clear legislative authority.
“This Amicus Brief is part of our continued legal efforts advocating for a balanced and clear regulatory framework that both protects consumers and fosters innovation,” said Perianne Boring, Founder and CEO of The Chamber of Digital Commerce. “We are optimistic that the Court will consider the arguments laid out in our brief and we will continue to fight against the SEC’s overreaching and unjust tactics.”
The Chamber’s brief argues that the SEC’s confrontational approach towards digital asset entities like Binance.US is stifling innovation in the U.S. and that the Commission has stretched the bounds of U.S. security laws to fit the anti-digital asset agenda of the Chair. With such a prominent level of Congressional interest in digital asset regulation, The Chamber also contends the SEC’s current actions imply an overreach of its authority, raising constitutional questions about separation of powers and due process.
“The SEC’s case against Binance.US is the latest in a recent line of SEC actions that misapply settled securities-law precedents in an effort to reach digital assets that do not qualify as securities subject to SEC jurisdiction under any existing law or regulation,” said Steven Gatti, Partner, Clifford Chance LLP. “While the Chamber of Digital Commerce supports sensible regulation of digital assets, any legal or regulatory framework should be thoughtfully crafted by Congress and implemented by financial regulators via regular notice-and-comment rulemaking. The SEC’s regulation-by-enforcement approach deprives market participants of regulatory certainty, which hampers innovation and drives digital-assets businesses offshore, harming US consumers and workers.”
The Chamber argues the SEC should employ more traditional administrative tools, including public rulemaking processes, allowing for the establishment of clear and reasonable regulatory guidelines. The Chamber emphasizes that such an approach would be more transparent and collaborative, fostering an environment where both regulatory bodies and market participants can operate with greater certainty.