SEC’s Crackdown on Bittrex Part of Larger Crypto Industry Purge, Claims Exchange
Seattle-based cryptocurrency exchange Bittrex has issued a formal response to the recent lawsuit filed by the US Securities and Exchange Commission (SEC), in which the agency accused Bittrex of operating an unregistered securities exchange, broker and clearing agency.
On April 17, the regulator also charged Bittrex Global GmbH, the exchange’s parent company, with operating a single shared order book with the US-based company.
The exchange is now challenging the SEC’s charges and attempting to defend its regulatory compliance practices.
Bittrex warns of impact on crypto innovation
Bittrex has hit back at the SEC’s lawsuit, claiming the agency’s enforcement action is part of a larger plan by SEC Chairman Gary Gensler to drive the crypto sector out of the US
In a statement, the exchange warned that the SEC’s actions could have a devastating impact on blockchain technology and innovation in general. In a statement, the exchange stated:
“The impact of the SEC’s approach to regulation by enforcement will have a chilling effect on not only cryptocurrency in the United States, but on blockchain technology and innovation in general.”
Bittrex is committed to regulatory compliance
Bittrex also accused the regulator of turning a blind eye to the exchange’s repeated requests for clarity in digital asset regulation.
The Seattle-based exchange says it has made several attempts to seek regulatory guidance and clarity on what digital assets are considered securities to ensure compliance and potentially remove any assets that fall outside the SEC’s purview.
Despite these efforts, Bittrex claims the SEC has not responded, leaving the exchange and the broader crypto industry in a state of limbo and potentially stifling innovation.
According to Bittrex, it has always conducted its business within the confines of the law, and it is eager to have the opportunity to demonstrate this fact in a legal setting.
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