"This time the situation is reversed, the SEC is the one facing action because it always finds fault in the crypto market."
The cryptocurrency trade association called the Chamber of Digital Commerce (CDC) took action against the Securities and Exchange Commission (SEC) of the United States (US) and Chairman Gary Gensler following threats to the market including investors through his campaign.
In order to prevent the SEC from taking aggressive action against crypto in the US, the CDC filed an amicus brief* in the SEC-Wahi case because they unfairly labeled some digital assets as securities.
*Written arguments are filed by a person or group that is not a party to the charge, but has a significant interest in the matter
According to the official announcement, the CDC's purpose in filing the amicus brief in the US District Court for the Western District of Washington is to dismiss the SEC-Wahi case and end the SEC's attempt to enforce its own rules.
While the CDC also questioned the scope of the SEC's jurisdiction over crypto in determining whether the secondary market of digital assets should be considered a securities transaction in the Securities Act of 1933 and the Securities Exchange Act of 1934.
This is because the SEC and other regulators continue to pursue legal actions and enforcement activities against crypto despite not having any approval from the US Congress.
According to Perianne Boring, CDC's Founder and Chief Executive Officer (CEO) said that before a case like SEC-Wahi had never happened, where the SEC was found to be threatening the US market solely because of digital assets.
Some digital asset backers such as Coinbase, Paxos Trust Company and CDC have agreed to fight the SEC's jurisdiction which has begun a campaign of regulatory crackdown on the crypto market.
In the meantime, Ripple (XRP) and Grayscale are also taking legal action against the SEC which has converted the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
