Thursday, February 29, 2024

Bittrex challenges SEC’s authority in crypto lawsuit, seeks dismissal

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Cryptocurrency trade Bittrex has submitted a movement to dismiss in its authorized dispute with the US Securities and Alternate Fee (SEC).

In its latest court docket filing, Bittrex argues that the SEC doesn’t have the authority to manage cryptocurrencies as securities except explicitly granted by Congress. This assertion challenges the SEC’s interpretation of present securities rules and seeks to determine a extra outlined regulatory framework accommodating digital property.

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In its movement to dismiss, Bittrex has adopted a similar approach to Coinbase, aligning its arguments intently with these made by the bigger cryptocurrency trade. This alignment signifies a strategic transfer by Bittrex to capitalize on the sturdy authorized framework established by Coinbase and assemble a unified protection in opposition to the SEC’s lawsuit.

Bittrex’s movement to dismiss (screenshot). Supply: CourtListener

Like Coinbase, Bittrex’s authorized workforce identifies what they understand as shortcomings within the SEC’s allegations concerning the buying and selling of funding contracts. Whereas each defendants acknowledge that the preliminary sale of sure crypto property might be categorized as securities contracts, they contend that the identical classification doesn’t prolong to property traded on secondary markets.

They argue that after an asset is launched and actively traded on secondary markets, it ought to not be thought-about a safety however fairly categorized as a commodity or one other class of digital asset.

Furthermore, Bittrex contends that the SEC didn’t adequately talk that its actions had been prohibited, emphasizing a protection technique generally employed by crypto defendants who problem the SEC’s allegations.

Associated: Bittrex withdrawals set to resume after bankruptcy court gives green light

In April, the SEC charged Bittrex and its co-founder, William Shihara, with operating an unregistered nationwide securities trade. As per the criticism, Bittrex enabled the buying and selling of digital property that met the securities standards outlined in U.S. federal securities legal guidelines with out acquiring SEC registration as an trade.

In the identical criticism, the SEC additionally charged Bittrex World — the overseas affiliate of Bittrex — with not registering as a nationwide securities trade.

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