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Bittrex condemned the enforcement action against it by the U.S. Securities and Exchange Commission (SEC). Bittrex claims it has always operated within the scope of the law and is looking forward to vindicating itself in court.
Bittrex condemns SEC’s enforcement action
Bittrex became the latest crypto market participant to come under SEC enforcement action. The exchange is a bitcoin (BTC) and crypto trading platform.
Bittrex recently announced plans to shut down its operations in the United States by the end of this month due to regulatory issues. It was charged by the SEC on April 17, for allegedly violating securities laws.
In the latest development, Bittrex has released an official statement, condemning Gary Gensler’s SEC enforcement action against it, describing it as part of a larger crusade aimed at entirely ousting crypto from the U.S.
SEC enforcement bad for crypto
The abrupt collapse of the FTX exchange, whose founder, Sam Bankman-Fried had a cordial relationship with top U.S. officials, has brought unwanted regulatory scrutiny upon the web3 space as a whole, with an SEC now tightening the noose on the crypto market participants.
Last year, the SEC executed 50% more enforcement actions against blockchain projects in the U.S., and it appears the agency is poised to continue this year. So far, Coinbase, Paxos, Kraken, and others have been charged by the SEC in 2023.
Bittrex has argued that the SEC’s enforcement-style regulation will have a “chilling effect” on web3 innovation in the U.S. The exchange has made it clear that it has never offered products that are securities or investment contracts to its users, as such, it will vindicate its position in court.
The exchange noted that it has made several attempts over the past five years to get the SEC to provide more clarity on its conduct deemed illegal or the exact cryptoassets supported by the exchange that is securities so that it could delist such assets.
However, the SEC failed to provide details.