Bittrex Challenges SEC’s Lawsuit

[Sophie Robert]

Bittrex, the global cryptocurrency exchange, and its founder, William Shihara, have taken a stance against the SEC’s complaint, refusing to succumb to a swift settlement. Even though it was closing its US operations, Bittrex hired prestigious law firms to defend its position, claiming that secondary market cryptocurrencies aren't securities and that the SEC has overstepped its bounds.

A Battle Against Regulatory Overreach
The firm’s bold move is seen as a pushback against the SEC’s regulatory overreach, sparking dialogue about the necessity and the cost of such lawsuits to taxpayers.

https://twitter.com/MetaLawMan/status/1674961321140338691

The Core Arguments: A Triple Threat
Bittrex’s motion to dismiss the SEC’s complaint is grounded in three key arguments:

• Cryptocurrency assets trading on secondary markets are not securities.
• Under the Major Questions Doctrine, the SEC lacks authority in this area.
• The SEC has violated Due Process by failing to provide fair notice of its claims.

These arguments, as Murphy notes, are expertly articulated and present a compelling case against the SEC’s allegations.

A question remains: Why is the SEC suing Bittrex for failing to register as a securities exchange after it has already exited the U.S. market?