Binance Files Motion to Dismiss CFTC Lawsuit, Cites Overreach
The attorneys have called out CFTC for its regulatory overreach. In their recent court filing, they wrote: “In this case, the CFTC seeks to regulate foreign individuals and corporations that reside and operate outside the United States — outstripping the limits of its statutory authority and treading on deep-rooted principles of comity with foreign sovereigns”.
According to the filing, the CFTC’s first six charges do not apply to the foreign conduct mentioned in the case, and some of the charges do not meet the necessary legal standards required by law.
The seventh charge, accusing Binance of evading the Commodity Exchange Act, should also be dismissed since the agency itself fails to meet the necessary requirements for such an accusation, as stated in the filing. The motion to dismiss the lawsuit reads:
“There is no dispute that the CFTC has no regulatory authority over spot trading even in the United States, let alone abroad. The issue posed by the CFTC’s complaint is whether, when Binance․com began offering additional products in or after 2019—by which point it had already begun to restrict and off-board potential U.S. users—it became subject to certain registration and regulatory compliance provisions of the Commodity Exchange Act (“CEA”) and CFTC regulations. Despite 236 paragraphs of allegations – which followed a multi-year investigation in which defendants provided extensive information voluntarily – the CFTC’s complaint fails at the outset.”
Recommended Articles
Crypto Presale Projects For 2023 To Invest; Updated List
Must ReadBest Crypto Exchange Affiliate Programs In 2023
Must ReadTop Crypto Marketing Firms / Agencies 2023; Here’s Best Picks [Updated]
Must ReadCrypto Telegram Channels List 2023 [Updated]
Must ReadTop 10 Web3 Games To Explore In 2023; Here List
Must Read
Binance and CFTC Feud
Earlier in March, the CFTC filed a lawsuit against Binance, claiming that the company provided unregistered derivatives products in the U.S., such as cryptocurrency trading services, futures, and options products. The regulator also accused Binance of lacking proper supervision, a reliable know-your-customer or anti-money laundering program, and failing to register as a futures commissions merchant, designated contract market, or swap execution facility.
Apart from the CFTC lawsuit, Binance also faces legal troubles in the U.S. due to a lawsuit filed by the Securities and Exchange Commission (SEC) last month.