Crypto Giant Paradigm Enters the Bittrex Lawsuit Arena

  • Paradigm, a company known for its significant investments in decentralized finance companies, has intervened as an expert in the ongoing “unregistered securities sale case” between the SEC and Bittrex.
  • Paradigm argues that the SEC does not have the right to intervene in secondary markets (OTCs, centralized and decentralized exchanges).
  • Paradigm also criticizes SEC Chairman Gary Gensler, stating that the SEC now seems to believe it has authority that Gensler previously stated it did not have.

Paradigm Intervenes in SEC-Bittrex Case

Paradigm, a company recognized for its substantial investments in decentralized finance companies, has stepped in as an expert in the ongoing legal dispute between the Securities and Exchange Commission (SEC) and the Bittrex exchange. Paradigm asserts that the SEC does not possess the authority to meddle in secondary markets, such as over-the-counter markets, centralized exchanges, and decentralized exchanges.

Shift from Primary to Secondary Markets

According to documents shared by Paradigm’s legal advisor Rodrigo Seira, the company claims that the SEC’s statements towards Bittrex and other crypto exchanges fundamentally deviate from its previous statements towards initial token sellers. The SEC initially sought to regulate funding systems under the Howey test in many cases. However, Paradigm observes that the SEC now appears to want to extend its regulatory boundaries to secondary markets as well, claiming jurisdiction over these markets.

Gensler’s Changing Stance on SEC Authority

Paradigm also made critical comments about SEC Chairman Gary Gensler. Referring to a speech Gensler made in 2021, Paradigm noted in its court documents that Gensler had stated that the SEC did not have the authority to regulate secondary markets. Despite no legal changes in this area since then, Paradigm argues that the SEC’s actions indicate that the agency now believes it possesses the authority that Gensler previously denied.

Secondary Markets and the Howey Test

In its court opinion, Paradigm further argued that there is no legal basis for viewing a token sold through an ICO as an investment contract, or for viewing transactions in secondary markets where this token is sold as “investment contract transactions.” Over the past six years, the SEC has opened dozens of cases and sued individuals who sold crypto assets through initial funding sales. Some courts have agreed with the SEC, stating that these are investment contracts under the Howey test. However, other courts have recognized the difference between token sales and third-party market sales of tokens, ruling that the Howey test does not cover transactions between third parties in secondary markets. Therefore, Paradigm asserts that the theories produced by the SEC are unprecedented and lack precedent.

In conclusion, Bittrex had already announced it would end its operations in the US a few weeks before the SEC filed its lawsuit. The SEC’s decision to sue a company that was certain to exit the country was heavily criticized. Bittrex also filed for bankruptcy in May.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Bitcoin Price Surge Predicted: Analyst Sees BTC Hitting $650,000 Fueled by ETFs

Get the latest insights on Bitcoin's potential trajectory – could the dominant cryptocurrency surpass gold's market cap and reach new heights?

Bitcoin Halving to Spark Supply Shock, Says Samson Mow – Omega Time Ahead?

Influential Bitcoin advocate Samson Mow offers a bullish outlook on Bitcoin's future, citing the upcoming halving and growing ETF inflows as key drivers. Here's why he believes the current market turbulence could lead to a surge in BTC price.

Bitcoin Price Plunge Continues: Analysts Predict Further Drops to $59K

Bitcoin's rollercoaster ride continues, with experts weighing in on where the bottom might lie. Get the latest price analysis, predictions, and insights into what these movements could mean for your crypto portfolio.

Bitcoin and Altcoins Face Correction Risk as Rate Cut Expectations Decline

Discover why Bitcoin and other cryptocurrencies may be on shaky ground, as economic indicators point to a potential market correction. Get expert insights on shifting market dynamics and what it could mean for crypto investors.

Bitcoin Price Outlook Dims as Crypto Stocks Slump, Peter Schiff Raises Doubts

Get the latest insights on the bearish trend in crypto markets, Peter Schiff's skepticism, and the impact on Bitcoin's price potential.
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Will WLD See $11 Again? Current WLD Analysis

WLD coin's daily technical analysis provides direction for long-term traders by indicating support and resistance levels.

Where Will NEO’s Rally Continue? Updated NEO Analysis 15 April

NEO gained strength from the support levels determined in the previous analysis and rose to its current price of $22.66, targeting $25.

Is DYDX Ready to Start a New Rally? Latest DYDX Analysis 15 April

Following its recent fall, DYDX rebounded strongly to $2.28, and it is indicated that if it can sustain 3-day candle closes above this resistance level, the upward trend may continue.

Is Solana in a Long-Term Buy Zone? Current SOL Analysis 15 April

Following its recent decline to $118, Solana surged back to $145 with robust purchases; for long-term investors, the $132.40 to $121.36 range is seen as potential buying areas.

Will ARB Start Its Ascent? Latest ARB Analysis 15 April!

According to the analysis of ARB coin, staying above $0.98 could set it on a path to reach $1.90.
Marisol Navaro
Marisol Navarohttps://en.coinotag.com/
Marisol Navaro is a young 21-year-old writer who is passionate about following in Satoshi's footsteps in the cryptocurrency industry. With a drive to learn and understand the latest trends and developments, Marisol provides fresh insights and perspectives on the world of cryptocurrency.
spot_imgspot_imgspot_imgspot_img

Bitcoin Price Surge Predicted: Analyst Sees BTC Hitting $650,000 Fueled by ETFs

Get the latest insights on Bitcoin's potential trajectory – could the dominant cryptocurrency surpass gold's market cap and reach new heights?

Bitcoin Halving to Spark Supply Shock, Says Samson Mow – Omega Time Ahead?

Influential Bitcoin advocate Samson Mow offers a bullish outlook on Bitcoin's future, citing the upcoming halving and growing ETF inflows as key drivers. Here's why he believes the current market turbulence could lead to a surge in BTC price.

Bitcoin Price Plunge Continues: Analysts Predict Further Drops to $59K

Bitcoin's rollercoaster ride continues, with experts weighing in on where the bottom might lie. Get the latest price analysis, predictions, and insights into what these movements could mean for your crypto portfolio.