Regulation
Digital Chamber presents amicus curiae brief LEJILEX in SEC case
The Digital Chamber of Commerce has filed a motion seeking leave to file an amicus brief in the ongoing SEC lawsuit between LEJILEX and Crypto Freedom Alliance of Texas (CFAT).
The organization intends to support the plaintiffs’ goal of preventing the SEC from governing the digital asset industry without a legislative basis.
LEJILEX Digital Chamber Documents Amicus Brief
The Digital Chamber has joined LEJILEX and the Crypto Freedom Alliance of Texas in their legal battle against the Securities and Exchange Commission (SEC).
This brief is filed to support the plaintiffs’ claim that the SEC has exceeded its jurisdiction in attempting to regulate digital assets under the securities laws, even in the absence of clear legislation. The amicus brief focuses on the importance of having well-defined and fair rules and guidelines that are not detrimental to the development of the digital assets industry.
Next, the brief argues that the SEC’s actions could have disastrous consequences not only for LEJILEX and CFAT, but for the entire digital asset industry. It raises the question that if the court does not intervene, the SEC will continue to unfairly increase its enforcement activities and could classify numerous digital assets as securities without clear rules.
SEC Regulatory Approach
LEJILEX, which is planning to launch a trading platform known as Legit. Exchange, in particular, faces legal risks as the SEC’s position remains ambiguous. The company has said it is impossible to apply for registration as an exchange or broker because the SEC has not yet issued rules on registering digital asset trading platforms.
By launching their trading platform, the plaintiffs argue that they are at risk of enforcement action by the SEC for operating an unregistered securities exchange.
The amicus curiae brief presented by the Digital camera It also provides a broader perspective on the scope of the SEC’s actions, with previous enforcement actions against major companies like Coinbase and Binance cited as examples of overregulation.
Need for legislative clarity and support for innovation
According to The Digital Chamber, the SEC’s current approach is unconstitutional because it violates Congress’s role in regulating the digital asset industry.
They advocate for proper cooperation between the SEC and other federal agencies along with Congress to formulate guidelines that will help guide industry participants on compliance expectations. They argue that this is necessary to encourage innovation and develop the digital asset industry in the United States.
Perianne Boring of the Digital Chamber Foundation and CEO of the Digital Chamber said:
“With this motion, we seek to act before the SEC extends its authority beyond the legal bounds in anticipation of its abuse.”
Likewise, Monetary base also supported LEJILEX by providing an amicus brief opposing the SEC’s regulatory power. Coinbase Chief Legal Officer Paul Grewal challenged the SEC’s expansive approach to regulation and urged Congress to provide clear guidance on digital asset regulation.
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