Cryptocurrency exchange Bittrex has taken a bold step in its ongoing legal battle with the United States Securities and Exchange Commission (SEC). The exchange has filed a motion to dismiss the lawsuit, challenging the SEC’s authority over cryptocurrencies.
Bittrex Challenges SEC’s Jurisdiction in Crypto Lawsuit: A Call for Dismissal
In its recent court filing, Bittrex asserts that the SEC lacks the authority to regulate cryptocurrencies as securities unless such power is explicitly granted by Congress. This argument challenges the SEC’s interpretation of existing securities regulations and calls for a more defined regulatory framework for digital assets.
The Core Argument: SEC’s Authority Over Cryptocurrencies
In its recent court filing, Bittrex asserts that the SEC lacks the authority to regulate cryptocurrencies as securities unless such power is explicitly granted by Congress. This argument challenges the SEC’s interpretation of existing securities regulations and calls for a more defined regulatory framework for digital assets.
Bittrex Aligns with Coinbase’s Legal Strategy
Bittrex’s motion to dismiss closely mirrors the approach taken by Coinbase, indicating a strategic move to leverage the robust legal framework established by the larger cryptocurrency exchange. This alignment aims to construct a unified defense against the SEC’s lawsuit.
The Debate Over Crypto Assets on Secondary Markets
Like Coinbase, Bittrex’s legal team points out perceived flaws in the SEC’s allegations regarding the trading of investment contracts. Both defendants agree that the initial sale of certain crypto assets could be classified as securities contracts, but they argue that this classification does not apply to assets traded on secondary markets.
They contend that once an asset is actively traded on secondary markets, it should be considered a commodity or another class of digital asset.
Bittrex’s Defense Strategy: Lack of Adequate Communication from the SEC
Furthermore, Bittrex argues that the SEC failed to adequately communicate that its actions were prohibited. This defense strategy is commonly used by crypto defendants challenging the SEC’s allegations.
about Bittrex
Bittrex is a leading cryptocurrency exchange that provides a platform for trading more than 190 cryptocurrencies. Founded in 2013 by a team of security professionals, Bittrex is renowned for its robust security measures and user-friendly interface.
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