A well-known technology investment firm, Paradigm’s special counsel, Rodrigo Seira, has strongly criticized the United States securities regulator for its alleged wrongful pursuit of Bittrex, a crypto exchange, in an attempt to regulate secondary crypto markets.
In a series of tweets on July 11, Seira expressed his belief that the U.S. Securities and Exchange Commission’s (SEC) case against Bittrex should be dismissed, citing an unreasonable application of the Howey test in the SEC’s claims.
Seira also highlighted SEC Chair Gary Gensler’s previous admission that crypto exchanges lack an adequate regulatory framework. According to Seira, this admission underscores the SEC’s lack of authority to regulate these secondary markets effectively.
Seira further emphasized that the digital assets industry remains in limbo until the SEC engages in the rulemaking requested by Coinbase, a cryptocurrency exchange. He claimed that the industry is caught in a paradoxical situation, being urged to register with the SEC while lacking a viable means.
The SEC initially filed a complaint against Bittrex on April 17, prompting the exchange to surrender its Florida money transmitter license on April 30. Subsequently, on May 8, Bittrex filed for bankruptcy.
This is not the first time Paradigm has voiced support for a crypto organization facing legal action from the SEC. The investment firm has previously offered its backing in similar situations.
Also Read: Paradigm Challenges SEC’s Attempt to Regulate DEXs
