American digital currency exchange “Bittrex” is facing new legal challenges as the Securities and Exchange Commission (SEC) has filed a lawsuit against it, accusing the exchange of operating an unregistered securities exchange, broker-dealer, and settlement venue. This lawsuit comes after six years of SEC investigation into Bittrex’s activities without identifying any illegally listed digital currencies.
On its part, Bittrex claims that the regulation of digital currencies as securities in the United States remains a vaguely defined matter and requires attention from congressional leaders instead of being solely determined by the SEC or the court. The digital exchange also asserts that the SEC has not provided sufficient evidence to support its claims that secondary market operations conducted on its platform involve securities.
The strict grounds for Bittrex’s motion to dismiss the case revolve around three key points.
- First, it emphasizes the importance of clarifying whether digital currencies should be subject to securities laws as claimed by the SEC.
- Second, Bittrex asserts that the complaint has not provided sufficient evidence to support its claims regarding the presence of securities in secondary market operations on its platform.
- Finally, it points out that the SEC has not provided adequate notice regarding the allegations against it and that its improper definition of the alleged unlawful behavior violates the company’s rights.
Bittrex’s attempt to seek dismissal aligns with a previous effort by the company “Coinbase,” as both companies strongly believe that the SEC lacks the “clear congressional authorization” necessary to enforce securities laws on digital currencies.
These new legal challenges faced by the American digital currency exchange, Bittrex, reflect the ongoing controversy surrounding the regulation and classification of digital currencies as securities in the United States. It is expected that this debate will receive significant attention from congressional leaders and other relevant entities in the near future.