• The SEC issued a new lawsuit against crypto exchange Bittrex, calling Algorand (ALGO), OMG Network (OMG), Dash (DASH), Tokencard (TKN) and I-House Token (IHT) unregistered securities.
• This statement is surprising as SEC Chair Gary Gensler has praised Algorand and its founder Silvio Micali in the past.
• ALGO had an interesting reaction to the news in the current bear market.
SEC Lawsuit Against Crypto Exchange Bittrex
The U.S. Securities and Exchange Commission (SEC) issued a new crypto-related lawsuit on Monday against crypto exchange Bittrex for violating federal securities laws by failing to register as an exchange, broker, or clearing agency. Former CEO Bill Shihara and Bittrex Global GmbH are also facing charges for this offense. In the lawsuit, the SEC called Algorand (ALGO), along with OMG Network (OMG), Dash (DASH), Tokencard (TKN) and I-House Token (IHT) unregistered securities.
Gary Gensler’s Praise of Algorand
What’s especially interesting about this statement is that SEC Chair Gary Gensler himself has praised Algorand and its founder Silvio Micali in the past. In a video going viral after the Bittrex lawsuit, Gensler is seen on stage talking about blockchain technology and how it can revolutionize apps like Uber and Lyft before referencing Algorand saying that it was “great technology that you can create Uber on top of”.
Current Bear Market Reactions
The current bear market has been one of the worst for the crypto industry with multiple companies going bust, asset prices dropping significantly, and regulators providing confusing comments regarding various assets falling under their jurisdiction – such as when Gary Gensler called ALGO a security despite having praised it beforehand. ALGO reacted interestingly to these news announcements as well with prices dropping upon hearing them but then recovering shortly afterwards showing some resilience from investors who still view ALGO favorably despite regulatory uncertainty surrounding it.
Uncertainty Over Gary Gensler’s Thoughts Regarding ALGO
It’s unclear what Gary Gensler actually thinks of Algorand or why he’s suddenly calling ALGO a security – though some believe it could be due to increasing pressure from higher up authorities looking to increase regulations around cryptocurrency markets which have grown exponentially over recent years without any proper oversight causing many scams within these markets according to regulators including those at the SEC itself who have since sought out stricter rules governing digital asset trading platforms like those operated by Bittrex among others .
Overall this situation serves as another reminder of how quickly things can change in an unregulated environment such as cryptocurrency markets where even those praising particular assets one day may call them securities suddenly during legal proceedings which could potentially cause more confusion among investors who may not know whether they should continue investing into certain projects or not due to fear of potential future legal action being taken against them if they do so without proper research beforehand.