Bittrex sued by SEC after Deciding to Leave US
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Bittrex sued by SEC after Deciding to Leave US
2 THINGS WE'RE WATCHING THIS WEEK
Meme of the day
THE SEC IS SUING BITTREX
The SEC is coming after another crypto exchange.
This time, it’s suing Bittrex for illegally offering securities without registering with the SEC.
Here’s everything you need to know:
The organisation claimed explicitly that Bittrex was operating a national securities exchange, clearing agency, and broker illegally.
The SEC is suing Bittrex, its global parent company, & co-founder Bill Shihara
Bittrex said it’ll go to court unless the agency offers a nice settlement option
Why this matters:
1/ Bittrex is no rookie - it’s an OG exchange founded in 2014
Bittrex was once the largest U.S exchange and 3rd largest exchange in the world.
Its headaches started back in 2017, when the SEC started investigating. It eventually got fined ~$30M for anti-money laundering/sanctions laws violations. Sound familiar?
Bittrex considered registering with the SEC in late 2022, but decided it couldn’t comply and still turn a profit.
And earlier this year, Bittrex announced it was leaving the U.S. because of all the regulatory confusion.
That didn’t stop the SEC shortly before that though from sending a Wells Notice (heads-up that enforcement was incoming…)
You know the SEC aint playin’ when you say you’re closing down and they still come after you.
2/ The SEC called 6 tokens that Bittrex traded illegally securities
2 THINGS WE'RE WATCHING THIS WEEK
I cleared my schedule this week to watch one thing… Indian Premier League.
I know, I know—so boring. In most cases, I'd rather watch paint dry than listen to old, cranky individuals dispute over teams, but...
This week, there are two hearings that could have a significant impact on the development of cryptocurrency:
1. Tuesday, April 18 - Securities and Exchange Commission oversight
This will cover the SEC's rulemaking, regulatory developments, and other operations since October 2021. It's going to be a long conference (also known as
The SEC's attempt to alter the definition of "exchange" is the one particular subject that we are concerned in.
With the proposed change, the SEC is trying to expand “exchanges” to include things like decentralized crypto trading platforms and other DeFi services.
Why this matters?
If this ends up happening, the SEC would gain oversight over a lot of decentralized services. And they’re known for one thing… making it rain regulations.
Gary Gensler (the head of the SEC) will be the star witness at Tuesday's hearing and all eyes will be on him as he defends the proposed rule change.
Btw - the SEC and Gary G remind me a lot of my little cousin playing basketball - they want easy dunks, and when he can't they change up the rules and lower the rim. *tsk tsk tsk*
2/ Wednesday, April 19 - Understanding Stablecoins’ Role in Payments and the Need for Legislation
There’s one goal for this hearing: review the 73-page draft for a new bill on stablecoins.
It establishes requirements for stablecoin providers, sets up standards for reporting, and also calls for a 2-year delay in issuing new stablecoins until the U.S. Treasury can complete an assessment.
Why this matters: This is the first comprehensive proposed law for stablecoins and it will play a big role in shaping how they are handled in the U.S. *gulp*
Crypto leaders like Jake Chervinsky (Chief Policy Officer at the Blockchain Association), Dante Dispate (Chief Strategy Officer at Circle), and others are set to testify.
That's right ladies & gents, crypto has 2 big hearings covering 2 of the biggest topics in crypto: DeFi and stablecoins. But don't worry, the Milk Man has his suit packed and is headed to D.C. to listen in on the action.
We'll make sure to give you Roaders a regulatory round-up later this week - so keep an eye out on your inboxes!