Paradigm’s Special Counsel Rodrigo Seira Criticizes SEC’s Unjust Actions Against Bittrex in Regulating Secondary Crypto Markets.
In a series of tweets on July 11, Seira expressed his opinions on Paradigm’s amicus brief filing. The brief argues for the dismissal of the SEC’s case against Bittrex, stating that the SEC’s claims are based on an unreasonable interpretation of the Howey test.
Seira Shares Views on Twitter Regarding Paradigm’s Amicus Brief in Bittrex Case.
. @paradigm filed an amicus brief in SEC vs. Bittrex that rejects @SECGov unsupported attempt to expand its jurisdiction over crypto secondary marketshttps://t.co/o8VTXyK4Ow
— Rodrigo (@RSSH273) July 10, 2023
Paradigm Files Amicus Brief Asserting SEC’s Overreach
On July 7, Paradigm submitted an amicus brief arguing that the SEC had exceeded its jurisdiction. In the Twitter thread, Seira highlighted SEC Chair Gary Gensler’s acknowledgement that crypto exchanges lacked proper regulatory frameworks.
Seira argued that this acknowledgment illustrated the regulator’s lack of authority to effectively regulate secondary markets in his perspective.
Seira’s Views on SEC’s Lack of Authority and Rulemaking
In a blog post on July 7, Seira reiterated his arguments, stating that the SEC lacks authority over crypto assets because they do not qualify as “investment contracts.” Consequently, these assets do not fall under the jurisdiction of the SEC.
Seira expressed the belief that without proper rulemaking requested by Coinbase, the digital-assets industry remains in a state of uncertainty. He highlighted the contradiction of being told to register while lacking effective means to do so.
SEC’s Complaint against Bittrex, Surrender of License, and Paradigm’s Support
On April 17, the SEC filed a complaint against Bittrex. Around two weeks later, on April 30, the exchange voluntarily surrendered its Florida money transmitter license. Eventually, on May 8, Bittrex filed for bankruptcy.
This is the second instance where Paradigm has shown support for a crypto organization facing SEC legal action. On May 11, Paradigm sought permission to submit an amicus brief in support of Coinbase. Coinbase argued that the SEC had not provided clear regulations or guidance for digital asset companies operating in the United States.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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