The industry organization, like previous papers submitted in different instances, claims that the SEC’s interpretation of investment contracts is fundamentally erroneous
The US Chamber of Commerce has filed an amicus brief disputing the power of the US Securities and Exchange Commission in its dispute against Binance.
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According to the Chamber, the SEC’s enforcement-first policy not only stifles innovation but also drives market participants to migrate offshore to avoid uncertain regulatory conditions in the US.
The Chamber’s goal as a trade association is to encourage the acceptance and use of digital assets and blockchain technology. Based in Washington, DC, the organization is a public policy champion for the asset class and the underlying technology that supports it.
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A key aspect of the Chamber’s argument distinguishes between what makes a “asset” and what constitutes a “investment contract.” It contends that tokens, which can represent a wide range of rights, are not investment contracts in and of themselves.
As a result, it contends that platforms trading these tokens should not be automatically classified as securities exchanges. This line of reasoning fundamentally contradicts one of the SEC’s main charges against Binance, which revolves around the platform’s operating as an unregistered securities exchange due to the platform’s listing of numerous digital assets.
Binance allegations
The SEC contends that the assets traded on Binance are securities under federal law, whereas Binance contends that they are commodities and hence outside the SEC’s jurisdiction.
Furthermore, the Chamber’s brief raises constitutional concerns, stating that the SEC’s unilateral, enforcement-only measures may violate the separation of powers and due process norms.
Such measures, according to the Chamber, may go beyond the SEC’s mission and violate constitutional standards that support American governance.
The SEC is asserting authority over a sizable portion of the economy that Congress did not intend for it to control, according to the Major Questions Doctrine, and this judgment raises serious questions about the separation of powers, it stated.
Even while the Chamber’s filing has little legal standing, its timing and impact may be crucial given that the exchange has come under increased regulatory scrutiny, not just in the US but also internationally.
The arguments made in the brief also highlight a mounting discontent among industry players who criticize the SEC’s regulatory strategy and scope.
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Similar briefs were submitted in August in a different dispute involving Coinbase and the SEC to support the exchange.
Similar to Binance, the filings made the case that the SEC’s interpretation of a “investment contract” is fundamentally flawed and at odds with established legal precedent.🤔
They add that a court ruling in favor of the regulatory body might have major and widespread repercussions for the bitcoin industry.
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