In a surprising turn of events, a brand new cryptocurrency exchange known as EDX is set to launch, backed by some of the most prominent institutions in traditional finance. The exchange will initially only facilitate trading in Bitcoin ($BTC), Ethereum ($ETH), Litecoin ($LTC), and Bitcoin Cash ($BCH). The announcement has sparked fresh speculation about how the Securities and Exchange Commission (SEC) views these digital assets.
The SEC’s Cryptic Stance
James A Murphy, lawyer and founder of MetaLawman, took to Twitter to express his views on this development. He questioned whether the SEC had given any sort of assurance to the financial backers of EDX that it doesn’t classify Ether, Litecoin, and Bitcoin Cash as securities.
In his tweet, he said, “Something is wrong when all we have is guesswork and tea leave reading to try to figure out what is permitted and what is prohibited. This is not really how countries governed by the ‘Rule of Law’ are supposed to work.”
Virtu Financial and EDX
One of the key backers of the new crypto exchange is Virtu Financial, a company founded by Vinnie Viola, a West Point grad, former Army Ranger, 101st Airborne, and current owner of the Florida Panthers. Virtu’s involvement is particularly notable as it sued the SEC just last year.
In a statement about the lawsuit, Virtu said, “We think it is important that there be clarity and transparency—that’s what the SEC requires of us as a listed company, so we’re just taking that same standard and saying, be transparent in how you’re dealing with potential seismic changes to equity market structure.”
A Call for Transparency
Virtu’s demand for clarity and transparency from the SEC resonates with Murphy’s earlier comments. The firm also emphasized that they were exercising their rights as citizens to understand the thought processes and interactions of the SEC Chair.
This sentiment was echoed by Murphy, who noted, “Sounds like Gensler’s tactics are not going over so well in the equities markets either.”
Credit: Source link
