US Chamber of Digital Commerce backs Binance in fight against SEC – Blockworks


Like other briefs filed in separate cases, the industry group is arguing the SEC’s interpretation of investment contracts are fundamentally flawed
Wasan Tita/Shutterstock modified by Blockworks
The US Chamber of Commerce has filed an amicus brief questioning the US Securities and Exchange Commission’s authority as the agency proceeds with its case against Binance.
The Chamber posits the SEC’s regulation-by-enforcement approach not only stifles innovation but also prompts market participants to relocate offshore to avoid uncertain regulatory conditions in the US.
As a trade association, the Chamber aims to promote the adoption and use of digital assets and blockchain technology. Based in Washington DC, the organization serves as an advocate for public policy surrounding the asset class and the underlying technology that powers it.
A crucial part of the Chamber’s argument differentiates between what constitutes an “asset” and an “investment contract.” It argues that tokens — which can represent a wide array of rights — are not themselves investment contracts. 
As such, it argues that platforms trading these tokens shouldn’t automatically be categorized as securities exchanges. This line of reasoning directly challenges one of the SEC’s core allegations against Binance, which centers on the platform’s operation as an unregistered securities exchange due to its listing of multiple digital assets.
The SEC argues the assets traded on Binance are securities under federal law, whereas Binance maintains they are commodities, putting them outside the SEC’s jurisdiction.
Additionally, the Chamber’s brief touches on constitutional issues, arguing that the SEC’s unilateral, regulation-by-enforcement actions could be at odds with the separation of powers and due process principles.
According to the Chamber, such tactics may exceed the SEC’s mandate and infringe on constitutional norms that underpin American governance.
“The SEC’s decision nevertheless to consider most digital assets as securities raises grave separation of powers concerns under the Major Questions Doctrine because the SEC is asserting jurisdiction over a major part of the economy that Congress did not intend for it to regulate,” it said.
While the Chamber’s filing holds no judicial weight, its influence and timing could prove pivotal as the exchange has faced increasing regulatory scrutiny, not only in the US but globally as well.
The arguments laid out in the brief also underscore a growing resentment from industry participants that questions the SEC’s regulatory scope and approach.
In a separate case involving the SEC and Coinbase in August, several similar briefs were submitted in defense of the exchange. 
Like Binance, those briefs argued that the SEC’s understanding of what constitutes an “investment contract” is both fundamentally misguided and at odds with existing legal precedent. 
They also further caution that a court decision siding with the regulatory body could have significant and broad ramifications for the cryptocurrency sector.
Don’t miss the next big story – join our free daily newsletter.
Follow Sam Bankman-Fried’s trial with the latest news from the courtroom
Blockworks Daily

Upcoming Events
Digital Asset Summit 2024 | London
MON – WED, MARCH 18 – 20, 2024
Blockworks’ Digital Asset Summit (DAS) will take place March 18-20, 2024 at The Hilton London Metropole. Why London? Momentum. London has become one of the world’s hottest crypto hubs. Innovation is thriving, new institutional investors are flocking in, and regulators like […]
buy tickets
recent research
Despite a decline in Near DeFi activity throughout the year, the network continues to show promise through its new product, the blockchain operating system. Further, the protocol continues to partner with Web2 companies to power consumer-facing dApps on the backend.
by 0xpibblez

Breaking headlines across our core coverage categories.
Ripple’s chief legal officer called the SEC’s filing to dismiss an SEC “surrender”
The Court of Appeals could choose to limit how the SEC may continue to deny GBTC’s conversion to an ETF, law partner says
Crypto developer numbers have risen 66% since the last bear market, but dipped over the past year, Electric Capital found
Crypto terror financing is back on the agenda with politicians pointing to its use in the Middle East, though Chainalysis says the complexities run far deeper
Blockchain competitors are “building their own little empires,” Fiskante says
The charity campaign, launched earlier this month, has already raised $185,000 since launch
Blockworks Daily Newsletter
Get the daily newsletter that helps thousands of investors understand the markets.
blockworks research
Unlock crypto's most powerful research platform.
Our research packs a punch and gives you actionable takeaways for each topic.
Blockworks Inc.
133 W 19th St., New York, NY 10011


Leave a Reply

Your email address will not be published. Required fields are marked *