In his most recent court appearance, Bittrex raised a key argument: the SEC lacks authority to regulate cryptocurrencies as securities unless Congress explicitly grants such authority. With this statement, Bittrex challenges the SEC’s interpretation of current securities regulations and seeks to establish a regulatory framework clearer and more adapted to digital assets.
Following in the footsteps of coinbasethe leading cryptocurrency exchange, Bittrex opted for a similar strategy, closely aligning his arguments with those presented by his counterpart. This strategic alignment suggests that Bittrex seeks to take advantage of the strong legal framework established by Coinbase and build a joint defense against the SEC’s allegations.
Cryptocurrencies: Bittrex follows in the footsteps of Coinbase
Like Coinbase, the legal team at Bittrex has identified what it considers to be shortcomings in the SEC’s allegations. with respect to investment contract transactions. Both defendants acknowledge that the initial sale of certain crypto assets could be considered securities contracts.
However, they argue that this classification should not be extended to assets traded on secondary markets. Furthermore, he argues that once an asset is launched and actively traded in secondary markets, it should no longer be considered a security, but rather a commodity or other type of digital asset.
Besides, Bittrex alleges that the SEC did not clearly communicate that its actions were prohibitedusing a defense strategy commonly employed by those challenging SEC claims in the cryptocurrency arena.
In April, the SEC filed charges against Bittrex and its co-founder, William Shihara, alleging that they ran a nationally unregistered stock exchange. According to the complaint, Bittrex allowed the trading of digital assets that met the securities criteria under the US federal securities laws.without obtaining the corresponding SEC registration as an exchange.
In addition, the SEC’s complaint also accused Bittrex Global, Bittrex’s foreign affiliate, of not to register as a national stock exchange. The legal battle between Bittrex and the SEC continues, and the court’s next actions will determine the course of this dispute and could set an imperceptible precedent.
Source: Ambito
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