The Crypto Council for Innovation (CCI) has released a brief supporting the certiorari petition in the case of Binance et al. v. JD Anderson et al. The CCI argues that the decision made by the Second Circuit contradicts the Supreme Court's precedents on extraterritoriality and should be reversed.
According to CCI, the Second Circuit erroneously based its decision on the geographic location of internet servers, treating transactions routed through U.S.-based servers as insufficiently "extraterritorial" to fall outside U.S. jurisdiction. The organization claims that internet data often traverses multiple locations worldwide as part of normal operations, with users unaware of or indifferent to the infrastructure's specific locations. Applying territorial criteria based on server locations could inhibit online commerce and complicate the legal landscape for users and companies alike.
CCI contends that considering the location of digital infrastructure, such as AWS servers, to determine jurisdiction could force U.S.-based internet infrastructure businesses to relocate offshore, risking judicial overload and conflict with international comity principles. The organization claims that blockchain technology, with thousands of global nodes, would be especially vulnerable under this ruling, potentially requiring compliance with multiple jurisdictions for every transaction. If allowed to stand, this decision could impair the blockchain sector, complicate legal jurisdiction over digital transactions, and undermine international legal harmony.
The Second Circuit Court of Appeals is based in New York City and hears appeals from district courts in Connecticut, New York, and Vermont. It comprises three-judge panels or convenes en banc in certain cases to review decisions from six district courts located in these states.
The Crypto Council for Innovation is a global coalition of industry leaders focused on promoting blockchain technology and digital assets' benefits. Its members aim to advocate for responsible regulations that enhance economic opportunities, improve lives, support financial inclusion, safeguard national security, and address illicit activities while emphasizing data-driven policy decisions through collaboration with regulators and industry stakeholders.