In a recent court filing, Bittrex argued that the SEC lacks jurisdiction to regulate or impose rules on cryptocurrencies as securities unless explicitly granted by Congress. This assertion challenges the SEC’s interpretation of existing securities regulations and seeks to establish a clearer legal framework that is more appropriate for digital assets.
In its dismissal motion, Bittrex has taken a similar approach to Coinbase, aligning its arguments closely with those of the larger cryptocurrency exchange. This partnership demonstrates a strategic move by Bittrex to leverage the strong legal framework established by Coinbase and build a unified defense system against the SEC lawsuit.
Like Coinbase, Bittrex’s legal team identifies what they perceive to be shortcomings in the SEC’s allegations regarding investment contract transactions. They argue that once an asset is launched and actively traded on a secondary market, it is no longer considered a security but rather classified as a commodity or another type of digital asset.
In April, the SEC charged Bittrex and its co-founder, William Shihara, with operating an unregistered national securities exchange.
In the same complaint, the SEC also charged Bittrex Global – the foreign branch of Bittrex – with operating as an unregistered national securities exchange.