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Court Deadlines Mark Critical Junction in Legal Spat
The world’s largest crypto exchange, Binance, and the United States Commodity Futures Trading Commission (CFTC) find themselves locked in an increasingly tense legal showdown. A recent court document has brought forward the pivotal next steps in this confrontation, marking critical dates that could wield significant influence over the case's fate.
Looking Ahead in the Binance vs. CFTC Saga
Judge Manish S. Shah has defined specific deadlines for the parties embroiled in this dispute. Binance, alongside CEO Changpeng "CZ" Zhao and former chief compliance officer Samuel Lim, must submit their motions to dismiss the lawsuit by July 27, 2023, as per the court order.
A disclosure from Monday's court proceeding reveals Binance and CEO Changpeng Zhao's intent to motion for the dismissal of the CFTC’s complaint in a Chicago federal court. Meanwhile, the CFTC has been awarded an extension, requiring it to respond by September 22, 2023, using up to 50 pages in their combined reply.
The court's decision to extend the page limit underscores the intricate nature of the CFTC’s accusations and the diverse arguments the defense will present in their Motions to Dismiss. Binance’s legal arm will subsequently be given the chance to counter the CFTC's statements by October 23, 2023, with a cap of 35 pages for their collective retort.
The court's ruling to pause discovery during the briefing period for the motions to dismiss further emphasizes the weight of this case. This puts a temporary stop to evidence collection and investigation until the court scrutinizes the briefs. Only after such an evaluation will the court consider lifting the stay, permitting both parties to continue with their proceedings.
For any early jurisdictional discovery requests, a written motion should be followed and presented personally during the court's regular motion call.
Awaiting the DOJ's Move?
As Binance battles the CFTC in court, the rumor of potential legal action from the United States Department of Justice (DOJ) against the exchange adds a further complication to the scenario. In a notable move, Binance has beefed up its legal squad, roping in seasoned officials from the SEC and DOJ.
As of this report, the BNB coin price is holding steady at $241.9. The sideways trend that began on June 10, when the price dipped below $253, continues. The $220 support level remains crucial; a dip below this benchmark could spark significant losses.
While the pending legal battles represent a significant challenge for Binance, they also highlight the broader regulatory issues that the cryptocurrency industry is grappling with. The ongoing scrutiny of Binance might be unsettling for some, but the clarity that these legal proceedings will ultimately bring can only be beneficial for the broader crypto industry. Only time will tell how this will affect Binance and the BNB price. Until then, investors should remain cautious and informed.