The SEC is Wrongfully Trying to Control Crypto Markets, Says Paradigm Counsel

Paradigm's special counsel blasts the SEC for unjustly crossing its boundaries against the crypto exchange giant, Bittrex. The SEC filed a complaint against Bittrex Exchange in April this year, demanding that the exchange submit its license.

Rodrigo Seira voiced his views on the matter following the petition filed by Paradigm against the SEC.

Paradigm Counsel's Stance on the SEC vs. Bittrex Suit

Rodrigo Seira believes that the United States Securities and Exchanges Commission (SEC) is overstepping its position against the crypto industry.

According to Seira, its ongoing lawsuit against Bittrex shows how unjust the agency is acting against the crypto firm.

Seira took to Twitter in a thread, debating that the US SEC should dismiss its case against the US-based centralized cryptocurrency exchange, Bittrex.

Today, @paradigm commented on the @SECGovs proposed redefinition of exchange"

Through haphazard rulemaking, the SEC inappropriately attempts to bring crypto trading platforms, including DEXs, under its remit and regulate them as securities exchangeshttps://t.co/ibv2u1n9VU

- Rodrigo (@RSSH273) June 8, 2023

He noted that the suit depends on an inconsiderate use of the Hower test to back its claims. This tweet comes after Paradigm's amicus brief filing.

Seira also emphasized that the SEC's case against Bittrex is the first of three lawsuits the authority had brought consecutive times against centralized crypto exchanges in the US. Thus, he believes that the SEC is unfairly trying to gain control over crypto secondary markets.

Paradigm's Petition Siding Coinbase

Paradigm filed an amicus brief on July 7, arguing that the SEC had crossed its jurisdiction against the crypto industry.

In his post, Seira also highlighted that SEC Chairperson Gary Gensler had initially said that cryptocurrency exchanges had no effective regulatory framework. Seira also argued that the SEC doesn't even have sufficient authority to regulate these secondary sectors.

The crypto investment company's counsel said a similar thing in a blog post on the company's official website on the same day.

Seira emphasized that the United States Securities and Exchanges Commission (SEC) lacks authority, as virtual assets do not include investment contracts." Thus, these virtual assets do not belong under the agency's remit.

He added that the SEC needs to interact in the rulemaking that US-based CEX Coinbase requested if it wants to progress with its jurisdiction over the crypto industry.

On April 17, the SEC filed the foremost complaint against Bittrex, noting that the exchange was running an unregistered national securities exchange, clearance agency, and broker.

Almost two weeks later, the crypto exchange handed over its Florida financial license to the agency before filing a bankruptcy record on May 8.

Paradigms' petition against the SEC on Bittrex's case isn't the first for the company, as it had previously filed an amicus brief supporting Coinbase in May.

In the petition, Paradigm argued that the SEC had failed to offer straightforward guidance for US crypto and virtual asset companies.

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