Circle & Paradigm have independently filed an amicus brief defending crypto exchange Binance against the SEC’s arguments.
The US Securities and Exchange Commission (SEC) is the main financial regulator in the US. This American regulator sued Binance Exchange in June this year for violating the Securities Act. SEC alleged that BinanceUS, the US subsidiary of the Binance exchange, is an unregistered national securities exchange and also offered various services in violation of the Securities Act.
On September 28, 2023, second-ranked stablecoin issuer Circle(USDC) filed an amicus brief in the SEC vs. Binance case and stated that stablecoins do not offer investment contracts, so the regulatory authority of stablecoins does not fall under the category of SEC securities laws.
On September 29, 2023, crypto venture capital firm Paradigm filed an amicus brief short in the same case and argued that the SEC office is trying to do so to leverage the disturbing allegations it raises in its complaint to change the law while circumventing the regulatory process.
According to Paradigm, the SEC agency is trying to target the financial sector that does not fall under its authority.
Such types of amicus briefs are a proof that the crypto exchange Binance is getting huge support from other top crypto companies, showing some kind of unity among the crypto companies to fight against the blind enforcement actions of SEC.
Here, crypto exchange Binance is not alone under the SEC’s enforcement action; America’s most regulated crypto exchange Coinbase also faced legal action in June this year as the exchange tried to comply with all financial regulations and also approached the SEC agency to get information about the rules and laws, but the SEC agency did not provide any guidance.
Recently, a report confirmed that the SEC agency also plans to launch new enforcement actions against small and large crypto companies.
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