Paradigm Supports Bittrex in SEC Case
Rodrigo Seira, special counsel for crypto investment firm Paradigm, has criticized the U.S. Securities and Exchange Commission (SEC) for its pursuit of Bittrex,, accusing the regulator of wrongly attempting to regulate secondary crypto markets.
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Seira expressed his views in a Twitter thread on July 11 and in an amicus brief filed by Paradigm, arguing that the SEC’s case against Bittrex should be dismissed. He highlighted that the SEC’s use of the Howey test in its claims is unreasonable.
Seira also referred to SEC Chair Gary Gensler’s acknowledgment of the inadequate regulatory framework for crypto exchanges, suggesting that the SEC may lack the authority to oversee these secondary markets.
In a blog post on July 7, Seira reiterated his arguments, stating that the SEC lacks authority over crypto assets because they do not involve “investment contracts.” Consequently, these assets do not fall within the jurisdiction of the agency.
Seira emphasized the need for the SEC to engage in rulemaking, as requested by Coinbase, in order to provide clarity and guidance to the digital-assets industry, which currently faces uncertainty due to conflicting directives from the SEC.
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