The Securities and Exchange Commission (SEC) charged crypto asset trading platform Bittrex, Inc., its co-founder and former CEO William Shihara, and its foreign affiliate Bittrex Global GmbH for operating an unregistered national securities exchange, broker and clearing agency. Is.
According to the SEC, Bittrex has facilitated the buying and selling of crypto assets since at least 2014, earning at least $1.3 billion in revenue from transaction fees.
SEC claims Bittrex and Shihara cooperated with issuers to remove “problematic statements” from public channels that could lead regulators to investigate crypto assets as security offerings.
Furthermore, the claim alleges that the list of Bittrex tokens Hey, God, dash, separate, Monolith (TKN), Naga (NGC) and IHT real estate protocol (IHT) constitutes an offering of unregistered securities.
Commission chairman Gary Gensler said the case reflects a lack of regulatory compliance in the crypto market, not clarity.
Gensler Under Fire For Illegal Algorand Promotion
In a related development, Gary Gensler is being criticized for promoting Algorand (ALGO)One of six tokens listed on Bittrex that have now been deemed a security by the SEC.
Since 2019, footage has emerged of Gensler talking about Algorand and its founder Silvio Micali at various public events.
What does Gensler’s promotion of security come under? Securities Act of 1933 and Securities Exchange Act of 1934which regulate the offering and sale of securities and prohibit misrepresentation or omission of material facts.
Those who violate these rules may face civil and criminal penalties, including fines and imprisonment.
Representative Davidson moves to remove Gensler
Rep. Warren Davidson has Legislation introduced to remove Gensler from his role as SEC chairman, citing a “long series of misconduct” and “unconstitutional overreach”.
The announcement follows the SEC’s proposed reclassification of “exchanges” under its own rules, potentially including crypto market participants in decentralized finance (DeFi).
The proposed amendments would require systems to register as national securities exchanges or broker-dealers and comply with alternative trading system (ATS) rules.
Gensler’s proposal has drawn criticism from crypto advocates, including Coinbase’s head of legal, Paul Grewal, who declared his intention to oust Gensler from his role.
Nonprofit Blockchain Advocacy Group coin center The SEC’s approach has also been deemed “unconstitutional”.
Meanwhile, SEC Commissioner Hester Pierce filed a protest against Gensler’s policy move.