The widespread panic that resulted from the statement from the U.S. Securities and Exchange Commission (SEC) about the legality of cryptocurrency exchanges has not only affected the cryptocurrency trading practices in the past few weeks, but has now caused such a level of uncertainty where exchanges are seeing the need to address the issue specifically.
Bittrex, one of the most popular U.S. based cryptocurrency exchanges, recently issued a special statement that pertained to the SEC’s announcement, reassuring its customers that it maintains complete compliance with the country’s law and fulfills all requirements expected out of an operation of its kind.
“Bittrex uses a robust digital token review process to ensure the tokens listed on the exchange are compliant with U.S. law and are not considered securities.“ A part of the statement read.
Sec requirements for cryptocurrency exchanges
Whereas, the SEC’s statement read that if there is a platform which “offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.”
While it remains to be seen whether the SEC agrees with Bittrex’s definition of “securities”, Bittrex did state that it is going to continue its discussions with the SEC and other institutions to ensure that appropriate measures are followed.
This might give Bittrex’s users an opportunity to take a sigh of relief, but on the other hand, it raises questions on whether the SEC would be in complete concurrence with Bittrex’s approach towards certain tokens and how it is defining them as not being securities.