SEC 'wrongly trying' to police crypto markets - Paradigm lawyer

Rodrigo Seira has criticized the SEC for exceeding its jurisdiction in its case against crypto exchange Bittrex.

News Join us on social networks

Rodrigo Seira, special adviser to crypto investment firm Paradigm, has slammed the US securities regulator for “wrongly” suing crypto exchange Bittrex in an effort to control secondary crypto markets.

>

In a July 11 Twitter thread, Seira shared her thoughts after an amicus brief from Paradigm, arguing that the U.S. Securities and Exchange Commission's (SEC) case against the exchange US-based crypto developer Bittrex should be "rejected" for relying on unreasonable use of the Howey test to support its claims.

The SEC lawsuit against Bittrex is the first of three cases the SEC has filed in quick succession against crypto exchanges. Through these actions, the SEC is falsely attempting to lay claim to secondary crypto markets.

— Rodrigue (@RSSH273) July 10, 2023

On July 7, Paradigm filed an amicus brief claiming that the financial regulator exceeded its jurisdiction.

In his thread, Seira also pointed out that SEC Chairman Gary Gensler had previously admitted that crypto exchanges do not have an adequate regulatory framework, making it clear, in his view, that the regulator does not lacked sufficient authority to regulate these secondary markets.

Seira made similar arguments in a July 7 blog post, noting that the SEC lacks authority because crypto assets do not involve “investment contracts.” Therefore, crypto assets fall outside the agency's jurisdiction.

“Until the SEC engages in crafting the rules demanded by Coinbase, the digital asset industry is stuck in limbo, simultaneously ordered to “come and register” without having any way efficient to do so," he said.

Related: