Paradigm delivers unbiased testimony in SEC vs. Binance case before a US federal court, drawing attention to the need for more comprehensive cryptocurrency regulation.
Paradigm, a venture capital company, has filed a complaint with the SEC alleging that the SEC is overstepping its bounds by trying to regulate virtual currencies. In an amicus brief filed as part of the litigation between the SEC and cryptocurrency exchange Binance, the business laid forth its case.
While the SEC chairman has recognized the existence of regulatory loopholes in the crypto space, the statement emphasized that only Congress can and should remedy such gaps.
Paradigm submitted an amicus brief in the US SEC’s action against Binance, in which it expressed worries about the SEC’s crypto policies.
The SEC’s stringent stance on cryptocurrencies may have spillover effects on other asset markets, as this example shows.
“The growth of crypto technology in the United States would be compromised and other major markets that are generally thought to be beyond the SEC’s authority may be destabilized, if the Securities Laws were interpreted in such an exceptional and overreaching way.”
Paradigm argues in its amicus brief that it has a vested interest in a proper interpretation of the Securities Laws. It makes clear that the SEC won’t overstep its bounds and that it would treat all companies fairly.
As stated here and elsewhere, “the SEC has acted beyond its statutory authority.” Paradigm is also concerned that the SEC’s overzealous regulations may stifle innovation in the United States.
It also stresses that the United States Congress should be the one to provide a solid framework for regulating crypto assets.
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