Chamber Of Digital Commerce Wants SEC Lawsuit Against Binance Dismissed

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Updated: 20 October 2023

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The US-based Chamber of Digital Commerce has aligned itself with Binance as the world’s largest crypto exchange attempts to dismiss a US Securities and Exchange Commission (SEC) lawsuit.

In an amicus brief filed on Oct. 19, the Chamber said the SEC’s regulation-by-enforcement strategy is ”paralyzing the market and sending digital asset innovation overseas.”

It also questioned the SEC’s authority and said courts should insist on a clear path forward from Congress instead of deferring to the regulator.

“The United States is now falling behind other countries in the blockchain space as a result of the SEC’s power grab,” it said. “This crusade against digital assets risks causing innovative technologies and the companies behind them to block U.S. users, depriving U.S. consumers and participants access to entirely new and emerging technologies that the rest of the world can access.”

🚨We have filed our amicus brief in the ongoing legal battle between the @SECGov and @BinanceUS 🚨@CodyCarboneDC explains what this means for the digital asset industry. pic.twitter.com/PVnMXv1h1w

— The Digital Chamber (@DigitalChamber) October 19, 2023

SEC Accused Binance And Changpeng Zhao of Securities Law Violations

The SEC filed a lawsuit against Binance and its founder, Changpeng Zhao, in June, accusing them of a raft of securities law violations.

Binance and Zhao hit back last month when they requested its dismissal, arguing the regulator had overstepped its authority.

In a 60-page motion filed on Sept. 21, Zhao and his exchange called the SEC’s lawsuit a retroactive attempt to use its regulatory power against them after failing to put in place the necessary guidelines.