Bittrex follows Coinbase's footsteps and files a motion against SEC's lawsuit.
Bittrex, a cryptocurrency trading platform established in 2014, has filed a motion to dismiss its ongoing lawsuit with the US Securities and Exchange Commission (SEC), challenging the regulatory body's authority over cryptocurrencies.
According to the court filing submitted on June 30th, the crypto exchange disputes the SEC's mandate to regulate cryptocurrencies under existing securities laws unless expressly empowered by Congress.
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The argument is an attempt to question the SEC's interpretation of the current securities rules and advocates for the establishment of a more accommodating regulatory environment for digital assets.
Mirroring Coinbase's stance in its own legal proceedings, Bittrex's motion to dismiss is noticeably similar. Echoing the sentiments expressed by Coinbase, Bittrex's legal representatives highlight the perceived inadequacies in the SEC's claims regarding the trading of investment contracts.
While admitting that the initial sale of specific crypto assets could be deemed securities contracts, they argue that such categorization should not be extended to assets traded on secondary markets. They contend that crypto, once launched and active on secondary markets, should be recategorized as commodities or another class of digital assets.
Additionally, Bittrex maintains that the SEC failed to provide clear directives indicating that its actions violated any regulations, resorting to a defense tactic frequently adopted by crypto defendants contesting the SEC's allegations.
The SEC has charged Bittrex and its co-founder, William Shihara, with operating an unregistered national securities exchange. According to the SEC's complaint, Bittrex facilitated the trading of digital assets without obtaining the necessary SEC exchange registration.
The same complaint also leveled charges against Bittrex Global, Bittrex's foreign subsidiary, accusing it of failing to register as a national securities exchange.
The motion to dismiss submitted by Bittrex represents a significant move in its legal battle against the SEC, marking an essential chapter in the broader narrative of regulatory oversight and its implications for the cryptocurrency domain.
