The Chamber of Digital Commerce is opposed to the SEC’s overreach in the Binance action.

The Chamber of Digital Commerce, a United States-based advocacy group, alleges that the SEC relies on enforcement-oriented tactics to classify digital assets as securities and to impose sanctions on cryptocurrency enterprises.

Collaborating with a consortium of digital asset companies, associations, legal experts, and lawmakers, the United States-based Chamber of Digital Commerce has united in a collective endeavor to contest the lawsuit between the U.S. Securities and Exchange Commission (SEC) and Binance. According to a recent amicus brief they filed, the advocacy group also aims to thwart the SEC’s bid to regulate the cryptocurrency sector without clear authorization from the U.S. Congress and to put an end to the SEC’s enforcement-focused regulatory approach.

Cody Carbone, the Vice President of Policy at the Chamber of Digital Commerce, articulated the following: “The SEC persists in its attempt to regulate the entire digital asset ecosystem through enforcement measures, rather than offering guidance or engaging in the appropriate notice and comment rulemaking procedures. These enforcement actions are paralyzing the market and driving digital asset innovation to foreign shores.”

The organization contends that the SEC’s reliance on an enforcement-based strategy to classify digital assets as securities and levy fines on cryptocurrency businesses impedes innovation and forces these crypto enterprises to seek more welcoming shores abroad. Furthermore, the Chamber asserts that the SEC lacks the congressional mandate to oversee all digital assets as securities. While legislative bodies work towards establishing a regulatory framework, the SEC’s actions pose risks to the industry and its stakeholders.

In light of various claims, including the SEC’s overstepping of its jurisdiction, digital assets not meeting the criteria for investment contracts, and token transactions failing to meet the requirements for Exchange Act registration, the organization has petitioned the court for the dismissal of the lawsuit.

Binance.US, in conjunction with Binance Holdings and its CEO Changpeng Zhao, has recently presented a motion for the lawsuit’s dismissal, contending that the SEC has exceeded its authority. Binance.US has also criticized the SEC’s recent requests for document disclosure and depositions as “unreasonable.” On September 12, BAM Trading Services, the operator of the Binance.US cryptocurrency exchange, submitted sealed documents in opposition to the SEC’s quest for additional information from Binance.US.