Bittrex, a cryptocurrency exchange, submitted a request to clarify its legal dispute with the United States Securities and Exchange Commission (SEC), stated Cointelegraph.
Sources revealed that Bittrex disagrees that the SEC only has the authority to regulate cryptocurrencies as securities if explicitly granted by Congress. It is expected that this challenges the SEC’s prediction about the existing securities regulations and eventually needs to establish a more defined regulatory framework accommodating digital assets, Cointelegraph added.
According to Cointelegraph, the legal team of Bittrex mentioned that they have identified the drawback in the SEC’s allegations regarding the trading of investment contracts. Supposedly, both organisations said that the initial trading of certain cryptocurrency assets might be considered securities contracts. However, the same classification is not applicable to assets exchanged on secondary markets.
Furthermore, Bittrex explained that the SEC did not mention that its actions were banned. It is believed that this was a defence strategy executed by cryptocurrency defendants who challenge the SEC’s allegations, Cointelegraph concluded.
(With insights from Cointelegraph)