- Bittrex stated that it will leave the US by April 30th.
- Organizational uncertainty was cited as the primary decision to leave.
- In fact, the SEC’s crackdown on the stock exchange may be at the heart of the decision.
The Securities and Exchange Commission (SEC) has, in wake FTX breakdownThere has been a crackdown on cryptocurrency-based companies in the United States, and this has led to some companies standing up fighting While others decided to leave.
Following a decision by the Securities and Exchange Commission (SEC) to sue Bittrex Inc for operating an unregistered securities exchange, the cryptocurrency exchange has filed a lawsuit against Bittrex Inc. bankruptcy. Despite filing for bankruptcy, Bittrex was already in the process of leaving the United States
The Securities and Exchange Commission and Regulatory Uncertainty
On March 31, Beatrix announce It will close its US operations on April 30, after nine years of operations. The company cited “the US regulatory and economic environment” as the main reason for closing the US branch.
“It is not economically feasible for us to continue operating in the current regulatory and economic environment of the United States,” He said Bittrex co-founder and CEO Richie Lai.
However, the SEC’s “regulation through enforcement” approach may have played a prominent role in Bittrex’s decision at the end of March. He was mentioned Leading up to the exit notice, the SEC filed Bittrex a Wells noted intends to take legal action regarding the company’s alleged violations of investor protection laws.
The SEC’s legal stance against Bittrex and its recent bankruptcy filing will not affect Bittrex Global, which serves clients outside the United States.
Funds still safe?
Despite filing for bankruptcy, the US branch of Bittrex said its clients’ funds are safe and secure. The exchange said it intends to ask the bankruptcy court to reopen customer accounts on a limited basis to distribute cryptocurrency to customers.
Bittrex’s assets and liabilities ranged from $500 million to $1 billion, according to the petition filed in a Delaware court.
The United States continues hostilities towards cryptocurrency
Several high-profile crypto firms have locked mouths with the SEC in recent months. coinbase, rippleAnd twinAnd Paxosand others faced the agency’s wrath.
Coinbase is one company looking to lead a charge against the SEC; Even after making suggestions, he might be Leave the United States Coinbase CEO, Brian ArmstrongHe was vocal against the agency and its president, Gary Gensler.
in interview With CNBC’s Dan Murphy on May 8, Armstrong said, “I don’t think it is [Gensler] It necessarily tries to regulate the industry as much as it may restrict it. But he has instituted some lawsuits, which I think are quite unhelpful to industry in the United States.”
on the flip side
- The SEC and Gensler have relatively free rein over the cryptocurrency industry, but there are indications that it may be. under control. On April 18, Gensler was called to testify about “regulation by application” of the cryptographic space.
Why should you bother
The SEC’s decision to chase crypto companies through enforcement rather than setting clear guidelines started making an impact. Bittrex’s exit from US shores may be just the beginning of a cryptocurrency exodus.
Read more about the SEC case against Bittrex:
Why the SEC case against Bittrex is unique in a sea of crypto issues.
Read more about a possible DDoS attack on Bitcoin:
Is Bitcoin in trouble? High fees for a potential DDoS attack.