In the legal battle it is having with the SEC, Bittrex has filed a motion to dismiss. The motion questions the SEC’s right to oversee cryptocurrencies as securities without express congressional consent. Bittrex supports a clearer regulatory framework for virtual currency.
Bittrex seeks to take advantage of the legal framework set up by the bigger bitcoin exchange by aligning its arguments with Coinbase. This tactical step suggests a cohesive defense strategy in response to the SEC case.
The SEC’s accusations concerning the trading of investment contracts have some recognized weaknesses, which are highlighted by Bittrex’s request to dismiss. Both Bittrex and Coinbase contend that securities should not be regarded as assets exchanged on secondary markets, but rather commodities or other digital asset types.
Bittrex, using a defense tactic frequently employed by cryptocurrency defendants disputing the SEC’s charges, claims that the SEC failed to appropriately notify it that its acts were illegal.
In April, the SEC filed charges against Bittrex and co-founder William Shihara for running an unlicensed national securities exchange. According to the complaint, Bittrex enabled the trade of digital assets that met the requirements for securities without registering with the SEC.
With their move to dismiss, Bittrex hopes to refute the SEC’s claims and maybe have the case against them dropped. Bittrex seeks to create a more benevolent regulatory environment for the cryptocurrency industry by contesting the SEC’s authority and interpretation of securities laws.
The request by Bittrex is consistent with Coinbase’s strategy, suggesting a calculated move to take advantage of the legal framework created by Coinbase. This unity creates a cohesive front and enhances the defense against the SEC’s complaint.
The outcome of the court battle between Bittrex and the SEC will significantly affect how digital assets are regulated in the United States. It will influence how securities laws are interpreted for cryptocurrencies and maybe create more precise rules for the sector.