Binance is getting industry support and many took a jab at the SEC’s unprecedented role in suppressing the crypto industry. Paradigm, Circle, and others filed an amicus curiae brief in Binance’s SEC complaint on Sept. 28. All Echoed a similar sentiment that the SEC is middling with law and acting above the Supreme Court. In this regard, Coinbase already threatened to go Supreme Court if clear laws are not formed soon.
“Is selling gold, silver, and fine art a security?” – Paradigm’s perspective.
Paradigm, a crypto venture capital firm, has accused the U.S. Securities and Exchange Commission (SEC) of attempting to change laws without due process in its case against Binance. They argue that just because assets like gold, silver, or acceptable art hold value, selling them doesn’t automatically classify them as a security.
Paradigm put it straight in their amicus brief that the SEC’s position, if successful, would disrupt established understandings of securities law. They contend that the SEC is overstepping its authority. This case comes after the SEC filed a lawsuit against Binance in June, alleging various violations of securities laws. The outcome of this case could have significant implications for regulating digital assets.
Circle, ICAN Chips In
Other entities, including Circle and the non-profit organisation Investor Choice Advocates Network (ICAN), have also filed amicus briefs in support of Binance, expressing grave concerns about the broader implications of the SEC’s stance on the crypto industry.
Circle, which operates the stablecoin USDC, raised questions about the SEC’s assertion that Binance’s stablecoin offerings should be considered unregistered securities. ICAN’s interest lies in ensuring that the SEC’s regulatory power doesn’t unduly hinder individuals and organizations from transacting in digital assets.
Binance Trading Falls with SEC Regulations
Shockingly, Binance, a major cryptocurrency exchange, saw a 48% drop in Bitcoin trading volume after reintroducing fees for its most active BTC trading pairs. This decline is the second-largest since April and aligns with the removal of zero fees for major pairs. Moreover, regulatory woes in the U.S. and Europe negatively pierced Binance’s market share, with a series of legal and financial regulations and scrutiny. This came just after the departure of key executives. Despite these challenges, Binance’s co-founder remains optimistic about the exchange’s resilience.
Should the SEC withdraw all cases against Binance and Coinbase amidst growing industry support, or risk repercussions under Gary Gensler’s rule? Only time will tell.
Source: https://coinpedia.org/news/binance-gains-support-as-paradigm-and-circle-slam-secs-regressive-approach/