Binance and Changpeng Zhao Want CFTC Lawsuit Dismissed

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Updated: 28 July 2023

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Leading cryptocurrency exchange Binance and its CEO, Changpeng “CZ” Zhao, are taking action to dismiss a lawsuit filed by the United States Commodity Futures Trading Commission (CFTC).

The legal representatives of Binance and CZ argue that the CFTC exceeded its regulatory jurisdiction and displayed regulatory overreach in its actions.

This legal battle between Binance and the regulatory authority could have far-reaching implications for the cryptocurrency industry.

#Binance and its CEO, Changpeng “CZ” Zhao, have officially requested the dismissal of a lawsuit brought by the United States #CFTC. The motion, submitted on July 27, accuses the CFTC of overstepping its regulatory boundaries and engaging in regulatory overreach.

— Abel Transon $BUBBLE 🫧🫧🫧 (@_CryptoWinner) July 28, 2023

Binance’s defense aims to challenge the CFTC’s assertions and establish its position in the evolving regulatory landscape surrounding digital assets.

The outcome of this clash may set a precedent for future regulatory scrutiny on crypto exchanges.

CFTC Lawsuit Background

The filing emphasizes Binance’s position that the CFTC is overstepping its authority by attempting to regulate foreign entities operating outside the United States.

The exchange maintains that the charges brought by the CFTC lack merit and should be dismissed. Binance highlights its post-2019 product offerings and the restriction of access to U.S. users, questioning whether it became subject to certain regulatory compliance provisions after introducing additional products and restrictions.

The CFTC filed the lawsuit in March, alleging that Binance violated federal derivatives and futures trading laws.

The regulator also raised concerns about Binance’s oversight practices, KYC and AML programs, and failure to register as a futures commissions merchant, designated contract market, or swap execution facility.

Federal regulators sued Binance, the world's largest crypto trading platform, and its CEO for allegedly violating trading rules. https://t.co/i7EcM4ATTN

— CNN (@CNN) March 27, 2023

Binance is facing other legal challenges in the United States, including a lawsuit filed by the Securities and Exchange Commission (SEC) and complaints from the IRS and the Department of Justice.

As the legal battles continue, the outcome will significantly affect cryptocurrency regulation in the United States and may impact the global crypto market.