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Crypto investment company Paradigm has filed an amicus brief in the US Securities and Exchange Commission (SEC) case against Bittrex, claiming the regulator is “attempting to unfairly stake claims on crypto secondary markets.”
The brief, filed on July 7, said the case against the US-based crypto exchange should be dismissed. It argued that the SEC could not support an extension of the Howe test to determine whether secondary market sales are investment contract transactions that relied on improper use of that test to make its claims.
Paradigm’s Amicus Brief
The SEC charged Bittrex in April with allegedly operating an unregistered securities exchange, broker and clearing agency, just weeks after the crypto exchange announced it was ending its US operations. Two other crypto vets – Coinbase and Binance – are also facing similar charges by the SEC.
Paradigm noted that the financial regulator’s claims against Bittrex and other crypto exchanges are “fundamentally different” from its many previous cases against token sellers. In the latter the SEC exercised its authority to regulate fundraising schemes under the Howe test.
However, this has changed with recent cases targeting crypto exchanges. Paradigm argued that the SEC is attempting to expand its authority beyond initial fundraising transactions to include “downstream” sales of crypto assets.
“The SEC does not have the authority to regulate secondary markets for crypto assets because they do not involve ‘investment contracts’ and therefore are not securities transactions under the agency’s jurisdiction.”
investment firm amicus brief claims that even though the crypto asset was first sold in a fundraising transaction, the financial regulator has “no legal basis” to argue that the asset itself “symbolizes an investment contract, or has a secondary interest in that asset.” Market transactions are investment contract transactions.”
Amicus Brief for Coinbase
Paradigm, led by Coinbase co-founder Fred Ehrsam, filed a petition The San Francisco-based crypto exchange was supposed to file an amicus brief in support of Coinbase in May, a month after receiving a Wells notice from the SEC.
The investment firm supported the exchange’s legal action against the agency, claiming it had a “strong interest” in ensuring the financial regulator was held accountable for delaying the company’s petitions.
The filing also criticized the SEC’s failure to provide clear regulations or guidance for digital asset firms in the country.
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[ad_1]
Crypto investment company Paradigm has filed an amicus brief in the US Securities and Exchange Commission (SEC) case against Bittrex, claiming the regulator is “attempting to unfairly stake claims on crypto secondary markets.”
The brief, filed on July 7, said the case against the US-based crypto exchange should be dismissed. It argued that the SEC could not support an extension of the Howe test to determine whether secondary market sales are investment contract transactions that relied on improper use of that test to make its claims.
Paradigm’s Amicus Brief
The SEC charged Bittrex in April with allegedly operating an unregistered securities exchange, broker and clearing agency, just weeks after the crypto exchange announced it was ending its US operations. Two other crypto vets – Coinbase and Binance – are also facing similar charges by the SEC.
Paradigm noted that the financial regulator’s claims against Bittrex and other crypto exchanges are “fundamentally different” from its many previous cases against token sellers. In the latter the SEC exercised its authority to regulate fundraising schemes under the Howe test.
However, this has changed with recent cases targeting crypto exchanges. Paradigm argued that the SEC is attempting to expand its authority beyond initial fundraising transactions to include “downstream” sales of crypto assets.
“The SEC does not have the authority to regulate secondary markets for crypto assets because they do not involve ‘investment contracts’ and therefore are not securities transactions under the agency’s jurisdiction.”
investment firm amicus brief claims that even though the crypto asset was first sold in a fundraising transaction, the financial regulator has “no legal basis” to argue that the asset itself “symbolizes an investment contract, or has a secondary interest in that asset.” Market transactions are investment contract transactions.”
Amicus Brief for Coinbase
Paradigm, led by Coinbase co-founder Fred Ehrsam, filed a petition The San Francisco-based crypto exchange was supposed to file an amicus brief in support of Coinbase in May, a month after receiving a Wells notice from the SEC.
The investment firm supported the exchange’s legal action against the agency, claiming it had a “strong interest” in ensuring the financial regulator was held accountable for delaying the company’s petitions.
The filing also criticized the SEC’s failure to provide clear regulations or guidance for digital asset firms in the country.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
