- Crypto firm Paradigm filed an amicus brief to challenge the SEC lawsuit against Binance.
- Paradigm argued that the SEC’s interpretation of securities laws to crypto-assets is flawed.
- The court has extended the legal proceedings after Binance and SEC fell short on the court’s consent order requirements.
A recent court filing revealed Crypto investment firm Paradigm filed an amicus brief to challenge the U.S. Securities and Exchange Commission’s lawsuit against cryptocurrency Exchange Binance. Paradigm’s move follows a similar filing by the company in late September in the ongoing case.
Notably, Paradigm claims the U.S. Securities and Exchange Commission’s categorization of crypto token sales as investment contracts threatens the crypto ecosystem. The firm also noted its concerns around the implication of that categorization for entities in the U.S. and other jurisdictions.
Paradigm argued further that the SEC’s approach is based on the incorrect assumption that a crypto asset is inevitably a security owing to its speculative potential. Instead, they argued that the Securities Law’s “investment contract” concept should apply to regular asset trans…
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