As Bitcoin exchange Bittrex is the latest victim of an SEC lawsuit, concerns are mounting that Coinbase will be the next major crypto exchange to be sued. According to Bittrex’s official statement, the exchange has no plans to settle with the SEC and is willing to fight the case in federal court.
Is Coinbase next after Bittrex? var?
As Bittrex is the latest victim of an SEC lawsuit, concerns are mounting that Coinbase is the next major crypto exchange to be sued. On Monday, the U.S. Securities and Exchange Commission (SEC) filed charges against Bittrex, stating that the Seattle-based exchange failed to register with the agency in multiple different jurisdictions and failed to comply with securities legislation. Following this news, a former SEC official claimed that another major US stock exchange could face similar charges amid widespread regulatory pressure in the country.
The financial watchdog has recently targeted a range of crypto firms, from small to large, operating in the US. This has taken the form of suspending certain crypto services, such as products that generate returns and lending activities offered by trading platforms, as well as litigation against cryptocurrency exchanges. Many denounced the SEC’s intrusive scrutiny and criticized its lack of regulatory clarity on cryptocurrencies. However, John Reed Stark, a former SEC official, predicted that Coinbase could be the next major crypto exchange to face the brunt of the anti-crypto crusade.
cryptocoin.com As we reported earlier, the California-based crypto exchange publicly condemned the SEC’s recent actions and urged regulators to create new regulations for cryptocurrencies rather than enforcing existing ones. The firm had previously stated that becoming SEC compliant would basically require it to cease all operations.
Since late 2021, SEC Chairman Gary Gensler has been warning digital asset exchanges like Coinbase to violate US law by allowing investors to trade cryptocurrencies that must be regulated as securities. Moreover, it required companies to follow SEC regulations by registering as stock exchanges and dividing all operations that could lead to further conflicts of interest. Earlier last month, the regulator sent the firm a Wells Notice, announcing that it plans to sue the company for alleged violations of a number of investor protection laws.
Bitcoin exchange condemns SEC’s anti-crypto stance
According to Bittrex’s official statement, the exchange has no plans to settle with the SEC and is willing to fight the case in federal court. Bittrex has officially responded to the US SEC’s lawsuit early Monday, alleging that the Seattle-based crypto exchange operates an “unregistered national stock exchange, broker, and clearing agency.” In addition, the financial watchdog accused Bittrex’s parent company, Bittrex Global GmbH, and its founder for failing to register as a stock exchange due to operating a single joint order book.
In response to the SEC’s lawsuit, Bittrex claimed that the agency’s decision to file a sanctions lawsuit against the exchange was part of SEC Chief Gary Gensler’s larger crusade to get the crypto industry out of the US. Speaking about the far-reaching impact of the SEC’s recent actions, the firm was quoted as saying:
The impact of the SEC’s approach to regulation through enforcement will have a chilling effect not only on cryptocurrency in the United States, but on Blockchain technology and innovation in general.
According to the official statement, Bittrex reiterated its stance on complying with regulations as it operates, claiming to have reached out to the agency multiple times in search of clear regulatory guidance. In addition, the Bitcoin exchange said it has repeatedly requested the regulator to net the different digital assets it considers as securities so that the exchange can evaluate and potentially delist them. However, according to Bittrex’s response, the SEC has turned a deaf ear.
Bittrex to challenge SEC in court
It is clear from Bittrex’s statement that the company remains committed to fighting the regulator in federal courts. Bittrex claims that it has always done business in accordance with the legal framework and that the company looks forward to “justifying their position in court.”
This shows that the Bitcoin exchange is reluctant to reach a settlement by paying a hefty fine, as many other crypto companies have done in the past. For example, Kraken agreed to pay a settlement of $30 million, while Nexo had to pay a staggering $45 million.
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