Bittrex Files Motion to Dismiss Litigation with SEC

Bittrex has filed a motion to dismiss its lawsuit with the US Securities and Exchange Commission (SEC).

The company argues that the department does not have the authority to regulate cryptocurrencies without congressional permission and is looking to “create a clearer regulatory framework” for the industry.

This approach is in tandem with Coinbase. Both companies acknowledge that primary sales of cryptocurrencies may be considered securities transactions; however, assets traded in secondary markets do not necessarily meet this definition and should instead be considered a type of commodity.

In addition, the SEC did not properly explain the limitations of its enforcement powers. In April, the SEC sued Bittrex, accusing it of running an unregistered securities exchange.

After the filing, General Counsel David Maria wrote to the WSJ that the firm was prepared to close up shop in the United States when it received notice of the lawsuit.

Later, in May, the exchange declared insolvency with assets and liabilities of up to $1 billion and more than 100,000 creditors. In June, the court gave Bittrex the green light to open withdrawals for its customers in the US.