Bittrex Settles With SEC
The U.S. Securities and Exchange Commission (SEC) announced Thursday that Bittrex Inc., its co-founder and former CEO William Shihara, and Bittrex Global GmbH have reached a settlement with the regulator. The SEC charged Bittrex and Shihara in April.
- Bittrex and Shihara operated an unregistered national securities exchange, broker, and clearing agency
- Bittrex Global failed to register as a national securities exchange
- Defendants consented to be permanently enjoined from violating securities laws
- Bittrex and Bittrex Global agreed to pay disgorgement, prejudgment interest, and a civil penalty for a total payment of $24 million
- Gurbir S. Grewal, Director of SEC’s Division of Enforcement, criticized Bittrex for attempting to evade securities laws
The SEC has taken enforcement actions against major crypto firms, including Coinbase. Coinbase claimed the SEC overstepped its authority and asked the exchange to delist all crypto tokens except bitcoin to comply with securities laws. SEC Chairman Gary Gensler believes all crypto tokens except bitcoin are securities and that the industry is filled with fraud. The SEC plans to appeal the Ripple decision made by District Judge Analisa Torres.
Hot Take
The settlement between Bittrex and the SEC highlights the regulatory scrutiny faced by crypto firms. With the SEC taking enforcement actions and Chairman Gary Gensler’s insistence on classifying most crypto tokens as securities, the industry must navigate a complex regulatory landscape. Compliance with securities laws will be crucial for crypto companies to avoid penalties and maintain credibility.
Benito Cormi, the brilliant crypto analyst who has made waves in the world of cryptocurrency. With his razor-sharp analytical skills and deep understanding of the digital asset landscape, Benito has become a trusted figure in the industry and remains at the forefront, tirelessly researching and analyzing market trends to help individuals and businesses make informed decisions in this dynamic landscape.