Crypto Investment Firm Paradigm Files Amicus Brief in SEC Case Against Bittrex
Crypto investment company Paradigm has filed an amicus brief in the US Securities and Exchange Commission’s (SEC) case against Bittrex, claiming that the regulator is “wrongfully attempting to lay claim over crypto secondary markets.” The brief argues that the case against Bittrex should be dismissed as the SEC cannot extend the Howey test to determine that secondary market sales are investment contract transactions.
Key Points:
– Paradigm argues that the SEC is attempting to expand its authority to regulate secondary markets for crypto assets, which the SEC does not have the legal basis to do.
– The investment firm claims that even if a crypto asset was first sold in a fundraising transaction, the SEC cannot argue that the asset itself embodies an investment contract.
– Paradigm previously filed an amicus brief in support of Coinbase, claiming that the SEC has failed to provide clear rules or guidance for digital asset firms.
Paradigm’s Hot Take:
Paradigm believes that the SEC is overstepping its authority in the case against Bittrex and other crypto exchanges. They argue that the SEC’s attempts to regulate secondary markets for crypto assets are unjustified and that the agency should be held accountable for its delays in providing guidance to digital asset firms.
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