A tricky Bittr-exit… SEC regulators yesterday accused Bittrex of violating federal securities laws, saying the crypto exchange sold securities (and therefore should’ve registered with the commission). The Seattle biz was already planning to cease US operations by month’s end, and had pointed a finger at regulators as a key factor driving its exod-US. Bittrex said it would "vigorously defend" itself against the charges.
Not the first, probably not the last… Bittrex joins a growing list of crypto companies targeted by US regulators after FTX's collapse. Last month the SEC reportedly told Coinbase it was considering legal action, and the CFTC sued Binance. Earlier this year, Kraken axed its staking program for US customers and paid $30M to settle claims that it failed to register with the SEC. Meanwhile, the SEC continues to hire more lawyers for its crypto-enforcement unit.
Leaving the court doesn't end the game… Bittrex's planned US exit didn't stop regulators' pursuit, and any crypto company considering relocating still risks litigation for past actions. Now both companies and lawmakers are seeking clearer crypto rules. But crypto-focused bills that would’ve provided added regulatory clarity stalled last year. In their place, the rules might be set by a tangled string of lawsuits and court cases.