This enforcement action against BITTREX is part of a broader crackdown by the SEC on cryptocurrency exchanges and other players in the crypto industry. As the SEC intensifies its enforcement efforts, businesses in the cryptocurrency sector will need to be diligent in adhering to securities rules and regulations.
Bittrex is accused of allowing users to trade cryptocurrencies that were deemed securities without registering with the SEC or obtaining exemptions.
“We are disappointed with the SEC’s decision to bring an enforcement action against Bittrex as part of Chairman Gensler’s larger crusade to drive cryptocurrency out of the United States. The impact of the SEC’s approach of regulation by enforcement will have a chilling effect on not just cryptocurrency in the United States, but on blockchain technology and innovation in general. While in operation, Bittrex provided a trading platform for digital assets. Securities were not offered or traded on Bittrex, nor did Bittrex offer any products that were investment contracts. For over five years, and despite multiple, specific requests to do so, the SEC would not provide notice of the specific conduct that it thought violated the federal securities laws. Specifically, on multiple occasions, we asked them to tell us what digital assets on our platform they viewed as securities, so that we could review and potentially delist them. They refused to do so. Bittrex operated within the parameters of the law at all times, and we look forward to vindicating our position in court. The SEC’s actions will directly and substantially harm U.S. customers and U.S. employees in this industry and will ultimately put our country at a significant disadvantage in the development of blockchain technology, including uses far beyond cryptocurrency, in the future.”
https://twitter.com/BittrexExchange/status/1648031603099312128
FIND THE SEC PRESS RELEASE HERE.
A prominent and often vocal attorney, one that has been active in the XRP lawsuit since December of 2020, had this to say about Bittrex lawsuit action.
