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Last week, Coinbase filed to dismiss the charges brought against it by the SEC. Motivating its approach, the exchange accused the agency of overreach, saying that crypto assets may not even come under their purview.
The leading US crypto exchange also accused the SEC of ignoring prior approval it granted for the sale of certain digital assets named in its lawsuit.
Encouraged by Coinbase’s move, Bittrex has also decided to follow suit.
Lawsuits and Bankruptcies
Although Bittrex is also in court due to bankruptcy proceedings, the petition to dismiss the charges pertains to a separate lawsuit that was filed shortly after the company decided to leave the US behind. At the time, it was already under investigation since 2017 and in futile talks with the SEC since 2022.
Finally, a Wales notice, followed by a full-fledged lawsuit, was filed against Bittrex for listing unregistered securities. However, the company has now hit back at the SEC, saying that the crypto assets they were sued for are not securities at all.
Publicly traded crypto assets misclassified as securities
According to court document, Bittrex argued that although crypto assets can be considered securities at launch, they change their status once they are traded on secondary markets. Thus, these crypto assets should be classified as commodities.
“Tokens are not a new type of security; They are different from everything the commission has ever considered a security. They bear much more resemblance to commodities or property than to “investments” which were the focus of “the purpose of Congress in enacting the securities laws”.
Furthermore, Bittrex’s legal team argued that even if the court finds that the said crypto assets do indeed qualify as securities, the SEC has no authority to attempt to regulate them because the US Congress has authorized the agency to do so. Not authorized to do so.
Bittrex’s legal team compared the SEC trying to regulate crypto assets to the FDA’s attempt to regulate tobacco or the EPA’s use of it to regulate greenhouse gases, both of which are considered overreach of government agency.
Finally, Bittrex’s Legal Counsel Also Hints at 2021 Announcement Gary Gensler himself, in which he admitted in Congress that the SEC has no legal framework for cryptocurrencies.
Whether or not Coinbase and Bittrex will have any success in these efforts is debatable – yet, they clearly indicate growing frustration with the SEC’s spur-of-the-moment regulation efforts, which seem to be turning lawsuits rather than good-faith efforts. give priority. On bridging the gap with crypto platforms.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
Last week, Coinbase filed to dismiss the charges brought against it by the SEC. Motivating its approach, the exchange accused the agency of overreach, saying that crypto assets may not even come under their purview.
The leading US crypto exchange also accused the SEC of ignoring prior approval it granted for the sale of certain digital assets named in its lawsuit.
Encouraged by Coinbase’s move, Bittrex has also decided to follow suit.
Lawsuits and Bankruptcies
Although Bittrex is also in court due to bankruptcy proceedings, the petition to dismiss the charges pertains to a separate lawsuit that was filed shortly after the company decided to leave the US behind. At the time, it was already under investigation since 2017 and in futile talks with the SEC since 2022.
Finally, a Wales notice, followed by a full-fledged lawsuit, was filed against Bittrex for listing unregistered securities. However, the company has now hit back at the SEC, saying that the crypto assets they were sued for are not securities at all.
Publicly traded crypto assets misclassified as securities
According to court document, Bittrex argued that although crypto assets can be considered securities at launch, they change their status once they are traded on secondary markets. Thus, these crypto assets should be classified as commodities.
“Tokens are not a new type of security; They are different from everything the commission has ever considered a security. They bear much more resemblance to commodities or property than to “investments” which were the focus of “the purpose of Congress in enacting the securities laws”.
Furthermore, Bittrex’s legal team argued that even if the court finds that the said crypto assets do indeed qualify as securities, the SEC has no authority to attempt to regulate them because the US Congress has authorized the agency to do so. Not authorized to do so.
Bittrex’s legal team compared the SEC trying to regulate crypto assets to the FDA’s attempt to regulate tobacco or the EPA’s use of it to regulate greenhouse gases, both of which are considered overreach of government agency.
Finally, Bittrex’s Legal Counsel Also Hints at 2021 Announcement Gary Gensler himself, in which he admitted in Congress that the SEC has no legal framework for cryptocurrencies.
Whether or not Coinbase and Bittrex will have any success in these efforts is debatable – yet, they clearly indicate growing frustration with the SEC’s spur-of-the-moment regulation efforts, which seem to be turning lawsuits rather than good-faith efforts. give priority. On bridging the gap with crypto platforms.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
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