Cryptocurrency exchange Bittrex filed a lawsuit to dismiss the US Securities and Exchange Commission (SEC) lawsuit filed against the site a few months ago.

In April, the SEC filed a lawsuit against Bittrex and its co-founder William Shihara, accusing them of trading unregistered securities. The regulator also accused the foreign affiliate of the exchange, Bittrex Global GmbH, of not registering as a broker-dealer.

Due to a difficult regulatory environment, Bittrex was forced to stop working with US clients, and in May the exchange filed for bankruptcy, covering several of its subsidiaries.

In its motion to dismiss the lawsuit, Bittrex management argues that even if the initial sale of any crypto assets can be considered an investment contract, crypto assets traded on the secondary market cannot be classified as securities.

Bittrex also disputes the SEC’s authority to regulate crypto assets, as the regulator does not have congressional approval to do so. The management of the exchange believes that, first of all, the SEC should develop a clear regulatory framework for regulating digital assets, taking into account their specifics. Then crypto companies will know what rules they are required to comply with, Bittrex said.

Recently, the Coinbase marketplace also filed a similar motion with the court. Coinbase lawyers argue that not a single crypto asset placed on the site can be called a stock or a bond.