Lawsuits and Bankruptcies
Last week, Coinbase filed a motion to dismiss the charges brought against it by the SEC, accusing the agency of overreach and stating that crypto assets may not fall under their purview. Following Coinbase’s lead, Bittrex has also filed a motion to dismiss charges against them.
– Coinbase accused the SEC of overreach and ignoring prior approvals for digital assets.
– Bittrex has decided to follow Coinbase’s lead and file a motion to dismiss charges.
– Bittrex is also facing bankruptcy procedures but the motion to dismiss pertains to a different lawsuit.
– Bittrex argues that the crypto assets they were sued over are not securities but commodities.
– Bittrex’s legal team states that the SEC has no right to regulate crypto assets.
Publicly Traded Crypto Assets Misclassified as Securities
Bittrex argues that crypto assets should be classified as commodities, not securities, once they are traded on secondary markets. They claim that tokens are different from traditional securities and bear more resemblance to commodities or property.
– Bittrex argues that crypto assets should be classified as commodities, not securities.
– They claim that tokens are different from traditional securities and resemble commodities or property.
– Bittrex’s legal team argues that the SEC has no legal framework for cryptocurrencies.
– The SEC’s attempt to regulate crypto assets is compared to government agency overreach.
Hot Take
Coinbase and Bittrex’s motions to dismiss charges and their arguments against the SEC highlight the growing frustration with the agency’s regulation attempts. The lack of a clear legal framework for cryptocurrencies and the perceived overreach by the SEC are causing tension between crypto platforms and regulators. It remains to be seen whether these attempts will be successful, but they demonstrate a desire for better communication and understanding between the crypto industry and regulatory bodies.
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