Bittrex Global CEO: “US Crypto Crackdown Has No Winners”

Oliver Linch has been CEO of Bittrex Global since 2021. The US branch of the crypto exchange recently had to close its doors in the USA. The main reason for this: “Regulatory uncertainties”, which made continued operation “no longer economically viable”, according to one Explanation. In an interview with BTC-ECHO, Linch explains how the trading venue will continue and why the crypto crackdown in the USA will ultimately have no winners.

BTC-ECHO: The US branch is closing its doors. What does this mean for Bittrex Global’s strategy?

Oliver Linch: First you have to differentiate. Bittrex US and Bittrex Global are two different entities. We were formed to offer services to clients outside of the United States. Nothing will change about that.

The US is tightening the reins on crypto. How do you follow this approach?

Not much from a company perspective, since Bittrex Global does not serve US customers.

Personally, however, I consider the actions of the USA to be a disappointing spectacle. There are discussions as to whether crypto is a security, a commodity or a derivative. This is wrong in my opinion: it is crypto and needs its own regulation. You try to apply outdated laws to the industry, but that’s like trying to force a rectangle through a hole. This cannot work successfully.

You mean the Howey test?

I mean securities laws in general. They are now 90 years old in the USA.

What would be the consequences of over-regulation?

Crypto would be stifled in the US. As a result, talent and companies are likely to migrate to pursue their business elsewhere. Globally, that might even be useful.

However, the uncertainty will also mean that more and more investors will lose interest in crypto. This is not only bad for the industry, but also for traditional banking and ultimately for the economy. In the end there will be no winners.

The lawsuit between Ripple and the SEC is, for many, emblematic of the US fight against crypto. How are you following the case?

The case has been ongoing since December 2020 and we’ve been living with this pervasive uncertainty ever since. I can’t blame the SEC here. Ultimately, she uses the tools at her disposal. Gary Gensler and the SEC are very smart people trying to follow the rules to the best of their ability. It’s the same with Ripple.

So if these two groups look at the same facts with the same intentions and come to completely different conclusions, then something is wrong with the system. The great lesson that I think can be drawn from the case is that the rules are so opaque that they cannot serve their purpose.

Thank you for the interview.