To defend itself against the SEC, Bittrex joined forces with Coinbase, underscoring the necessity for more precise rules in the cryptocurrency sector.
According to court records, Bittrex has requested that the SEC’s action be dismissed. Bittrex claims that it didn’t violate any laws and that the SEC’s accusations are incorrectly founded on the law.
Bittrex argued that the SEC’s lawsuit was an attempt to regulate the cryptocurrency industry through enforcement actions rather than through rulemaking.
Bittrex filed a court document asserting that the SEC lacks the authority to regulate cryptocurrencies as securities without explicit authorization from Congress. Bittrex is fighting the SEC’s interpretation of securities laws in an effort to create a more transparent regulatory environment for virtual currency.
In response to the SEC’s action, Bittrex and Coinbase are both taking a similar stance, claiming that by enabling the trade of cryptocurrencies, they did not break any securities laws.
Bittrex and Coinbase are challenging the SEC’s definition of security, arguing that cryptocurrencies should not be classified as such immediately after their initial offering. Instead, they believe that cryptocurrencies should be classified as commodities or digital assets.
The strategic alignment between Bittrex and Coinbase is a sign of the growing maturity of the cryptocurrency industry. These two leading exchanges are joining forces to fight for the future of the industry.
The SEC filed a lawsuit against Bittrex, its co-founder William Shihara, and Bittrex Global, accusing them of operating an unregistered national securities exchange, broker, and clearing agency.
The SEC accused Bittrex of colluding with crypto asset issuers to remove “problematic statements” from public channels that could have led the agency to investigate the assets as securities.
However, the SEC has made it plain that it would fight back even though it has not yet responded to Bittrex’s petition to dismiss.