Accéder au contenu principal

Paradigm Files Amicus Brief, Accuses SEC Of Regulatory Overreach

Crypto research firm Paradigm has filed an amicus brief in the ongoing court case between the US Securities and Exchange Commission (SEC) and Binance, its US affiliate – Binance.US – and the exchange’s global CEO Changpeng “CZ” Chao.

Back in June, the US top securities watchdog launched a lawsuit against the defendants, accusing them of operating unlicensed exchanges, broker-dealers, and clearing agencies among 13 charges.

In a statement released on September 29, Paradigm, who claims to have zero interest or investment in the defendants, has taken a stance against the SEC, accusing the commission of governmental overreach.

SEC Wants To Change The Law, Paradigm Says

According to Paradigm, the SEC is attempting to bypass the rulemaking process and rewrite the law, utilizing the “disturbing allegations” in its lawsuit against Binance and its co-defendants.

The San Francisco-based research firm backs its claims by firstly stating that the SEC’s prayers being granted would mean that the US Court accepts the commission’s theory that an “investment contract” does not necessarily need a “contract.” 

Paradigm states that such a theory is false as case law clearly says that an investment contract demands a contractual agreement that promises future appreciation of an asset. 

In the case of cryptocurrencies, the crypto research firm says the SEC cannot provide such an agreement as there is none, especially in relation to tokens sold on secondary markets.

Furthermore, Paradigm stated that a court victory for the SEC against Binance would extend the application of US securities laws to all kinds of assets, including gold, silver, and artworks, which are bought with the anticipation of price appreciation yet not viewed as investment contracts. 

Paradigm further emphasizes that the general hope that an asset accrues value does not create a common enterprise, a vital part of an investment contract. Rather, such optimism only represents a common interest, especially when there is no direct link between the asset issuer and secondary investor, as in the case of many crypto assets. 

Calls For Crypto Regulation Continues

In its final argument against the SEC, Paradigm calls for clear crypto regulations that empower the SEC’s oversight over the crypto space, a sector of growing economic and political importance.

The crypto research firm believes that the SEC’s reliance on the Howey Test, as the 77-year-old legal test, does not provide much-needed clarity to regulate a diverse crypto industry. 

In conclusion, Paradigm states the SEC’s attempts to enforce crypto regulation through an “unreasonable” interpretation of “investment contracts” based on this legal test fail the Major Question Doctrine, thus requiring clear congressional intervention. 

Total crypto market cap valued at $1.055 trillion on the hourly chart | Source: TOTAL chart on Tradingview.com

Featured image from Britannica, chart from Tradingview


Source link

The post Paradigm Files Amicus Brief, Accuses SEC Of Regulatory Overreach appeared first on Job From Home Blog.

Libellés :

Commentaires

Enregistrer un commentaire

Posts les plus consultés de ce blog

Jojobet (464)

Jojobet bahis adresi ua – En Güvenilir Bahis Sitesi 2021 Jojobet bahis adresi ua – En Güvenilir Bahis Sitesi 2021 Geri dönüşü yüksek bir heyecana hazır olun! Heybetli rekabet atmosferinde keyifli bir oyun deneyimi sunan öncü bir bahis platformuna hoş geldiniz. İnternetin en güvenilir ve güçlü adreslerinden biri olarak, size en üst düzey kalite standartlarına sahip online bahis fırsatlarını sunmaktan gurur duyuyoruz. Bahis ve şans oyunları tutkunlarının beklentilerini aşan kapsamlı hizmetlerimizle sizi unutulmaz bir yolculuğa çıkarmak için buradayız. Profesyonel ekibimiz, Türkiye’nin en donanımlı ihtiyaçlarına uygun olarak sürekli yenilenen bahis seçenekleriyle geniş bir kumarhane atmosferi ile etkileyici deneyimler sunar. Farklı spor dallarında eşsiz tahmin ve analiz araçlarıyla dolu olan platformumuz, kazandıran oranlarla sizden tam not alacaktır. En yeni teknolojik yazılım alt yapımız sayesinde, kesintisiz ve sorunsuz oyunculuk deneyiminin tadını çıkarabilirsiniz. Şansın, yetene...
Enregistrer un commentaire
Lire la suite

$3 Million Stolen In ‘Kraken’ Crypto Con

The surge in online scams has drawn heightened regulatory attention towards the crypto industry. A recent case serves as a vivid reminder of the risks involved, where a Connecticut resident became a victim of a significant scam, losing more than $3 million to individuals falsely purporting to be associated with Kraken, a well-known cryptocurrency exchange. The victim, who remains unnamed, was based in Westport and followed advice to transfer funds out of a retirement account, intending to reinvest the money in an account supposedly linked to Kraken. However, their decision led to more than $3 million swiftly disappearing into crypto wallets they could not access. Recovery Of Stolen Crypto Funds Fortunately, the victim sought help from law enforcement, and local detectives, collaborating with the state’s Organized Crime Task Force, launched an investigation. This diligent effort enabled them to trace the transactions and freeze accounts involved in the scam. While they managed to r...
Enregistrer un commentaire
Lire la suite

Space loves AI, AI doesn’t love Space

Space-related applications of artificial intelligence and machine learning are often confined to the ground because moving AI onboard satellites, while promising, is significantly more difficult. “Running AI in space is like running a marathon on the moon — impressive if achieved, but limited by the environment,” said Sylvester Kaczmarek, chief technology officer at OrbiSky Systems, a London startup focused on AI edge operations. Advanced processors are power hungry, meaning satellites with onboard AI require large solar panels and extra batteries. Plus, “radiation in space can fry electronics,” Kaczmarek said. Power management is another problem. Many AI devices require very high currents at low voltages. “The demands that AI devices place on power management are new to the space industry,” said Bert Vermeire, Voyager Space chief technology officer. “There are no good solutions with space heritage and it is difficult to identify efficient and small form factor power and manageme...
Enregistrer un commentaire
Lire la suite