Bold Defense of Binance Against SEC: Circle and Paradigm Step Up
Major venture capital firm Paradigm has criticized the US Securities and Exchange Commission (SEC) for what it perceives as a bypass of regulatory procedures in its legal battle against Binance. Paradigm believes that the SEC is overstepping its jurisdiction and rejecting this maneuver. The SEC aims to determine that secondary market sales are investment contract transactions, a move Paradigm sees as an attempt to change the law without following the rulemaking process. Circle also joined Paradigm in filing an amicus brief in the case, stating that payment stablecoins lack the characteristics of an investment contract and therefore do not fall under the SEC’s purview. The SEC’s actions have drawn criticism, as they are seen as an attempt to control secondary digital asset markets. These amicus briefs indicate substantial support for Binance and show unity among firms against perceived blind enforcement actions by the SEC. It is important to note that Binance is not the only target of the SEC’s enforcement actions, as Coinbase also faced legal action earlier this year. Reports suggest that the SEC is planning to launch new enforcement actions against both small and large digital asset companies. This lack of clarity and clear guidance from the SEC has led to criticism from industry participants..
#Circle #Paradigm #Boldly #Defend #Binance #SEC
Major venture capital firm Paradigm has criticized the US Securities and Exchange Commission (SEC) for what it perceives as a bypass of regulatory procedures in its legal battle against Binance. Paradigm believes that the SEC is overstepping its jurisdiction and rejecting this maneuver. The SEC aims to determine that secondary market sales are investment contract transactions, a move Paradigm sees as an attempt to change the law without following the rulemaking process. Circle also joined Paradigm in filing an amicus brief in the case, stating that payment stablecoins lack the characteristics of an investment contract and therefore do not fall under the SEC’s purview. The SEC’s actions have drawn criticism, as they are seen as an attempt to control secondary digital asset markets. These amicus briefs indicate substantial support for Binance and show unity among firms against perceived blind enforcement actions by the SEC. It is important to note that Binance is not the only target of the SEC’s enforcement actions, as Coinbase also faced legal action earlier this year. Reports suggest that the SEC is planning to launch new enforcement actions against both small and large digital asset companies. This lack of clarity and clear guidance from the SEC has led to criticism from industry participants..
#Circle #Paradigm #Boldly #Defend #Binance #SEC
