The Chamber of Digital Commerce filed an amicus curiae defending crypto trade Kraken within the lawsuit initiated by the US SEC, based on Feb. 27 court docket filings.

The Chamber defined that the aim of the amicus transient is to finish the SEC’s tried regulation of the digital asset trade by way of enforcement with out legislative authority.

The CDC wrote in a press release on X:

“Enforcement is NOT sufficient. Whereas Congress works on options, [the SEC’s] aggressive method stifles innovation. Honest rules can open alternatives for financial progress, job creation, and monetary inclusion.”

The commerce physique asserted that the SEC is inaccurate in stating that securities legal guidelines could be expanded to control all digital asset transactions. It known as this “flawed as a matter of legislation” and insisted that digital property are “not inherently funding contracts.”

The group additionally warned of the broader results of enforcement. It known as the SEC’s stance “a risk to the adoption and development of blockchain know-how.” The Chamber additionally argued that this might considerably impression the trillion-dollar digital asset area and, by extension, the US economic system.

The submitting notably cites different high-profile instances by which the SEC didn’t win a wholly favorable end result, together with these towards Ripple and Terraform Labs.

SEC sued Kraken final November

The SEC initially sued Kraken in November 2023 over allegations of working an unregistered securities trade, dealer, supplier, and clearing company. The regulator additionally alleged that the trade had commingled buyer and company funds, amongst different actions.

Kraken and its representatives have publicly denied the SEC’s expenses and are preventing the case in court docket. Most not too long ago, Kraken filed a movement to dismiss the case on Feb. 23, emphasizing that the allegations primarily describe failure to register quite than fraud.

The Chamber of Digital Commerce stated in its newest submitting that it helps Kraken’s movement to dismiss the lawsuit.

The case is separate from an earlier case regarding Kraken’s staking companies. Kraken settled with the SEC for $30 million and halted these companies within the US in February 2023.

Two different crypto exchanges — Coinbase and Binance — are engaged in related SEC instances that allege unregistered trade operations. These instances started in June 2023.