Rodrigo Seira, a special counsel at crypto investment firm Paradigm, has accused U.S. securities regulators of “unfairly” pursuing crypto exchange Bittrex to crack down on the secondary cryptocurrency market.
In a Twitter thread on July 11, Sayla added her thoughts following a court filing from Paradigm, citing the U.S. Securities and Exchange Commission (SEC) lawsuit against U.S.-based cryptocurrency exchange Bittrex. argued that it should be “dismissed” because it rests on unfair legal grounds. Make claims using the Howey test.
The SEC lawsuit against Bittrex is the first of three lawsuits filed in quick succession by the SEC against cryptocurrency exchanges. Through these actions, the SEC is unfairly trying to assert its right to the cryptocurrency secondary market.
— Rodrigo (@RSSH273) July 10, 2023
On July 7, Paradigm filed for court. simply It argued that financial regulators had strayed from their jurisdiction.
Sayla said in the thread that SEC Chairman Gary Gensler previously Admitted In his view, cryptocurrency exchanges lacked a proper regulatory framework, making it clear that regulators lacked sufficient powers to regulate these secondary markets.
Sayla also made a similar claim in the July 7 newspaper. blog The post noted that the SEC has no authority because crypto assets do not contain an “investment contract.” As a result, crypto assets are not subject to authority authority.
“Until the SEC engages in the rulemaking that Coinbase has requested, the digital asset industry will be at a loss and at the same time being told to ‘register,’ but they have no effective means.”
Related: Bittrex Challenges SEC Authority in Crypto Lawsuit, Seeks Dismissal
The SEC first filed a complaint against Bittrex on April 17. Nearly two weeks later, on April 30, the exchange waived its Florida money transfer license and finally filed for bankruptcy on May 8.
It also marks the second time Paradigm has offered assistance to a cryptocurrency organization facing legal action from the SEC.
On May 11, Paradigm filed a court brief in support of Coinbase, arguing that the SEC failed to provide clear rules and guidance to U.S. digital asset companies.
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