
Paraphrased Text:
The Securities and Exchange Commission (SEC) claimed that decentralization does not exempt protocols or tokens from its oversight in a lawsuit filed against the cryptocurrency exchange Bittrex. SEC Chairman Gary Gensler is expected to emphasize this point during his appearance before a Congressional subcommittee. Bittrex allegedly sold unregistered securities, including DASH and Algorand's ALGO. The SEC argued that ALGO qualifies as a security because investors could reasonably expect to profit from the efforts of the Algorand Foundation and Algorand Inc. The industry widely uses protocol-and-foundation arrangements, but the SEC believes that such arrangements can be the basis for investors' expectation of profits. Gensler previously stated that most crypto tokens are securities and plans to reinforce this position during the committee session. However, critics argue that the SEC has not provided a clear path to registration or listing for the tokens it deems as securities. As a result, Bittrex announced its decision to exit the U.S. market due to regulatory and economic concerns.