Bittrex files motion to dismiss SEC lawsuit
Bittrex files motion to dismiss SEC lawsuit
Crypto exchange Bittrex has asked the court to dismiss a lawsuit filed against it by the U.S. Securities and Exchange Commission (SEC).
Bittrex left the U.S. market in May after the SEC accused the company of operating an unregistered securities exchange and because of an unstable economic environment.
According to BeinCrypto, documents released by lawyers representing Bittrex and its founder, William Shihara, say a court should dismiss the SEC's lawsuit. The statement is based on the fact that although the exchange has declared bankruptcy for its U.S. unit, it is not ready to accept defeat.
The motion to dismiss the proceeding against Bittrex includes several arguments that the SEC does not have the authority to regulate crypto assets as securities without Congressional approval.
In addition, Bittrex's lawyers point out that the SEC believes the exchange was trading investment contracts. However, while the initial sale of some crypto assets may be classified as securities contracts, such a rule does not apply to assets traded on secondary markets.
Bittrex also believes that the SEC should have informed it that its actions were prohibited.
The arguments made in the filing are entirely consistent with a similar document filed by Coinbase. As a result, Bittrex will be watching closely to see what the judge decides regarding Coinbase.
We have previously reported that Bittrex has filed for bankruptcy in the United States.
