Bittrex challenges SEC’s authority in crypto lawsuit, seeks dismissal

Bittrex, a cryptocurrency exchange, has actually made a noteworthy relocation in its legal conflict with the United States Securities and Exchange Commission (SEC) by submitting a movement to dismiss the lawsuit filed against it.In its current court filing, Bittrex argues that the SEC does not have the essential authority to regulate cryptocurrencies as securities unless clearly given by Congress. Source: Court ListenerLike Coinbase, Bittrexs legal group determines what they perceive as shortcomings in the SECs claims relating to the trading of investment contracts. While both defendants acknowledge that the preliminary sale of specific crypto assets could be classified as securities contracts, they contend that the very same category does not extend to properties traded on secondary markets.As a result, they argue that when a possession is introduced and actively traded on secondary markets, it needs to no longer be considered a security, however rather classified as a product or another class of digital asset.Moreover, Bittrex competes that the SEC did not sufficiently interact that its actions were restricted, stressing a defense method frequently utilized by crypto defendants who challenge the SECs allegations.Related: Bittrex withdrawals set to resume after insolvency court offers green lightThe SEC filed accusations against Bittrex and its co-founder, William Shihara, in April, for running an unregistered nationwide securities exchange.