Bittrex has filed for dismissal of the securities and exchange commission (SEC)’s case against it. The exchange is taking a step similar to that of embattled Coinbase which also filed two days ago for dismissal of the SEC case alleging that it is a securities exchange.
Lawyers representing Bittrex and its founder William Shihara, in a statement on Friday argued that the allegations of Bittrex being a securities exchange be thrown out by the court. This is coming after Bittrex shut down its US arm, citing harsh regulatory environment.
It seems the exchange may have decided to fight for a comeback with the new filing. The filing documents reveal that Bittrex is challenging the SEC’s regulation of cryptocurrencies as securities without authorization from the congress.
The lawyers also pointed out some faults in the SEC’s claims that the exchange traded investment contracts. They further argued that the agency did not provide Bittrex with a fair warning that its activities were prohibited prior to dragging the company to court.
Crypto exchanges in the US have faced similar allegations lately, including Coinbase and Binance which are currently in court. The filing by Bittrex may further amplify the outcry that the SEC has been overreaching in its enforcement approach on crypto in the country.
Coinbase Files for Dismissal
It seems like Bittrex is taking a cue from Coinbase which filed for a dismissal of similar charges against it two days ago on grounds of lack of merit. The company said in its filing that nothing had change in its business model since 2021 to warrant the allegations the SEC has leveled against it.
Also in an interview, Coinbase’s Chief Legal Officer Paul Grewal said the company doesn’t list securities. He further reaffirmed that the SEC conducted a thorough review of Coinbase’s business practices, including processes it uses to vet tokens, prior to allowing the firm to go public in April 2021, and so there’s no basis for the new allegations.
“The only change is in the SEC’s position regarding its powers,” the company said in the document. “That position is untenable as a matter of law, and its assertion through this enforcement action offends due process and the constitutional separation of powers.”
Crypto Industry Fights Back
Although the crypto industry has been under a lot of pressure from the SEC without fighting back, it seems those days are long gone. With these two exchanges filing for the dismissal of SEC’s cases against them, other companies may do the same to prove that the SEC’s allegations are without basis.
Binance may be the next to take such as step as it is the one under the most pressure currently. The exchange is facing regulatory challenges even outside the US, further complicating its case.