According to court documents on February 27, the Digital Chamber of Commerce has filed an amicus brief to defend crypto exchange Kraken in a lawsuit initiated by the U.S. SEC.
The Digital Chamber explained that the purpose of the amicus brief is to end the SEC’s attempted regulation of the digital asset industry through enforcement means beyond legislative authority.
The Digital Chamber of Commerce wrote in a statement:
"Enforcement alone is not enough. The SEC's aggressive stance stifles innovation while Congress works on solutions. Fair regulation can create opportunities for economic growth, job creation and financial inclusion."
The trade association asserts that the SEC is incorrect in claiming that securities laws can be expanded to regulate all digital asset transactions. It called this a "legal error" and insisted that digital assets "are not inherently investment contracts."
The group also warned of the broader impact of enforcement. It called the SEC's stance "a threat to the adoption and advancement of blockchain technology." The Digital Chamber also argued that this could have a significant impact on the trillion-dollar digital asset space and indirectly impact the U.S. economy.
The filing specifically cites other high-profile cases in which the SEC has not entirely achieved favorable outcomes, including cases against Ripple and Terraform Labs.
The SEC sued Kraken in November
The SEC originally sued Kraken in November 2023, accusing it of operating an unregistered securities exchange, broker, dealer and clearing agency. The regulator also claimed that the exchange mixed client and corporate funds, among other things.
Kraken and its representatives have publicly denied the SEC’s allegations and are defending them in court. Most recently, Kraken filed a motion to dismiss the lawsuit on February 23, emphasizing that the allegations primarily describe failure to register rather than fraud.
In its latest filing, the Digital Chamber said it supports Kraken’s motion to dismiss the lawsuit.
The case is separate from an earlier case involving Kraken’s staking services. Kraken reached a $30 million settlement with the SEC in February 2023 and ceased these services in the United States.
Two other crypto exchanges, Coinbase and Binance, are involved in similar SEC cases accusing them of conducting unregistered exchange operations. It is reported that these cases began in June 2023. #KRAKEN #SEC訴訟
