Crypto Expert Accuses SEC of Unfairly Targeting Bitcoin Exchanges
Paradigm's legal expert, Rodrigo Seira, attacks U.S. regulators for unfairly targeting crypto exchange Bittrex.
Rodrigo Seira, legal expert at the cryptocurrency company Paradigm, criticized the U.S. securities regulator for unfairly targeting the crypto exchange Bittrex. He argues they're trying to control secondary crypto markets without valid reasons.
In a recent Twitter conversation, Seira expressed his view on Paradigm's legal document, known as an amicus brief. He argued that the U.S. Securities and Exchange Commission's (SEC) case against Bittrex should be dismissed. He believes they misused a test called the Howey test to make their case.
On July 7, Paradigm submitted the amicus brief, stating that the SEC exceeded its legal authority by pursuing Bittrex.
Seira emphasized that even the SEC's chief, Gary Gensler, has confessed that crypto exchanges lack proper regulations. This suggests, in Seira's opinion, that the SEC doesn't have enough authority to control these markets.
In a blog post, Seira stated that the SEC doesn't have the right to control crypto-assets, as they aren't "investment contracts." This means they don't come under the SEC's jurisdiction.
He stressed, "Until the SEC sets up rules, as Coinbase has requested, the digital-assets industry is in a state of confusion. They're told to 'register' but have no effective way to do so."
The SEC first accused Bittrex of misconduct in April. After about two weeks, Bittrex gave up its Florida money license and later declared bankruptcy in May.
