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 running an unregistered securities exchange, broker, and clearing agency.
On April 17, the regulator also charged Bittrex Global GmbH, the exchange’s parent company, over its operation of a single shared order book with the U.S.-based company.
The exchange is now challenging the SEC’s accusations and seeking to defend its regulatory compliance practices.
Bittrex warns of impact on crypto innovation
Bittrex has hit back at the SEC’s lawsuit, claiming that the agency’s enforcement action is part of a larger plan by SEC Chairman Gary Gensler to drive the crypto sector out of the U.S.
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 of regulation by enforcement will have a chilling effect on not just cryptocurrency in the United States, but on blockchain technology and innovation in general.”
Bittrex stands firm on regulatory compliance
Bittrex also accused the regulatory body of turning a blind eye to the exchange’s repeated requests for clarity on digital asset regulation.
The Seattle-based exchange claims that it has made multiple attempts to seek regulatory guidance and clarity on which digital assets are considered securities to ensure compliance and potentially delist any assets that fall outside of the SEC’s purview.
Despite these efforts, Bittrex alleges that the SEC has been unresponsive, leaving the exchange and the wider crypto industry in a state of limbo and potentially stifling innovation.
According to Bittrex, it has always conducted its business within the bounds of the law, and it is eager to have the opportunity to demonstrate this fact in a legal setting.
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