Paradigm’s Legal Arguments Against the SEC’s Binance Case

Summary

This document summarizes Paradigm’s amicus brief opposing the SEC’s case against Binance. It argues that the SEC is using its lawsuit to extend securities regulation to crypto secondary markets without clear congressional authorization or formal rulemaking. Paradigm’s position is that an investment contract requires contractual undertakings promising future value, while a secondary-market crypto sale generally involves delivery of the asset without such a promise.

The brief further argues that a buyer’s expectation of appreciation does not by itself establish a common enterprise, particularly where a later purchaser has no meaningful relationship with the asset’s issuer. It invokes the major questions doctrine to contend that regulation of crypto markets requires clear legislative authorization. These are advocacy claims about the law, not a neutral account or a court’s decision; the text presents Paradigm’s reasoning and does not resolve how a court will rule.

Key ideas

• Paradigm argues that a secondary-market crypto sale does not itself promise future value from an issuer.
• The brief says expected asset appreciation alone does not establish a common enterprise.
• It contends that the SEC’s approach could bring ordinary asset sales within securities law.
• Paradigm argues that broad crypto regulation requires clear authorization from Congress.
• The document presents one party’s legal position, not a court ruling.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.