Bittrex Seeks Dismissal of SEC Legal Dispute
In its court filing, Bittrex asserts that the SEC’s regulatory jurisdiction over cryptocurrencies as securities is lacking unless specifically granted by Congress. This challenges the SEC’s interpretation of existing securities regulations and aims to establish a clearer regulatory framework for digital assets.
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Bittrex has aligned its arguments with those made by Coinbase indicating a strategic move to leverage Coinbase’s legal framework and present a unified defense against the SEC’s lawsuit.
Both Bittrex and Coinbase contest the SEC’s allegations regarding the trading of investment contracts. While they acknowledge that certain crypto assets may be considered securities during their initial sale, they argue that once actively traded on secondary markets, these assets should be categorized as commodities or other digital asset classes, no longer falling under securities regulations.
Furthermore, Bittrex claims that the SEC failed to effectively communicate the prohibited nature of their actions, employing a defense strategy commonly used by crypto defendants challenging the SEC’s allegations.
Bittrex and its co-founder, William Shihara, faced charges from the SEC in April for running an unregistered national securities exchange. The complaint stated that Bittrex facilitated the trading of digital assets meeting securities criteria without obtaining SEC registration. Additionally, Bittrex Global, the foreign affiliate of Bittrex, was charged with not registering as a national securities exchange in the same complaint.
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