Crypto News: In the wake of the recent consideration by the US Securities and Exchange Commission (SEC) of proposed amendments to change the definition of an exchange, a new wave of fear and uncertainty has clouded the crypto market. In a new move, the SEC accused Bittrex, its co-founder William Shihara, of running an unregistered national stock exchange, broker and clearing house. In yet another news of crypto enforcement action by the regulatory body, Bittrex, which announced its March 2023 shutdown of US operations, reportedly received a notice from Wells from the SEC. The crypto community responded with sharp criticism of the SEC’s action.
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The SEC’s notice came to light about a month after it was issued, according to a report on Sunday in the Wall Street Journal. The report added that the announcement of closure of US operations by Bittrex came after it received the notice. This news also coincided with a correction in crypto prices early in the week as the price of Bitcoin fell below $30,000.
The major setbacks of the US SEC in crypto litigation
The U.S. Securities and Exchange Commission (SEC) has faced adverse rulings in several crypto lawsuits in the recent past, in line with popular investor sentiment that the SEC has yet to provide clarity on regulatory compliance. An example of this was in March 2023, when arguments in the Grayscale Bitcoin spot ETF lawsuit were heard before the District of Columbia Court of Appeals. The judges put the SEC to the test, asking what really prevented them from approving Grayscale’s application when futures contracts were approved. Likewise, the SEC got into trouble because of its behavior in the Voyager case.
Attorney John Deaton, representing the XRP token holders in the SEC Vs Ripple case, named these cases where the failures of the SEC came to light.
In Ripple, the judge said the SEC is “not faithful to the law.” In LBRY, the judge shamed the SEC for the lack of clarity. In Grayscale, the Court said the SEC’s arguments made no sense. In Voyager, the judge criticized the SEC’s ethics and conduct.
The SEC will lose.”
Meanwhile, the Ripple lawsuit, which has the potential to change the face of the crypto market, is pending in court.
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Anvesh reports major developments around crypto adoption and trading opportunities. He has been associated with the industry since 2016 and is now a strong advocate for decentralized technologies. Anvesh is currently based in India. Contact him at [email protected]
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
This post 4 Major US SEC Crypto Litigation Failures The Investor Should Know
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