United

Victory

Crypto exchange Binance and its CEO Changpeng “CZ” Zhao have taken steps to contest a lawsuit filed by the United States Commodity Futures Trading Commission (CFTC). 
In a recent court filing on July 27, legal representatives for Binance and CZ made a formal request for the dismissal of the CFTC’s claims, citing concerns of regulatory overreach and the exceeding of the commission’s regulatory authority. 
The filing strongly argued that the CFTC was attempting to regulate foreign entities and individuals operating outside the borders of the United States, which, according to Binance and CZ, falls beyond the scope of the commission’s statutory jurisdiction. 
This approach, they asserted, interferes with the established principles of comity with foreign sovereigns, raising significant legal questions. 
According to the defense, the initial six charges presented by the CFTC did not directly relate to the foreign conduct at the core of the case. 
Furthermore, certain charges were argued to not meet the required legal standards. As for the seventh charge, which accused Binance of evading the Commodity Exchange Act (CEA), Binance’s legal team maintained that the CFTC failed to meet the necessary requirements to sustain such an accusation. 
One of the primary contentions of the motion to dismiss was the CFTC’s alleged lack of regulatory authority over spot trading both domestically and internationally. 
The defense questioned whether Binance․com should be subjected to specific registration and regulatory compliance provisions in the CEA and CFTC regulations, considering factors such as the introduction of additional products after 2019 and previous limitations on U.S. users. 
READ MORE: <a href="https://www.cryptointelligence.co.uk/kucoin-denies-layoff-rumors-amidst-crypto-industry-stabilization/" rel="noopener noreferrer nofollow">KuCoin Denies Layoff Rumors Amidst Crypto Industry Stabilization</a> 
The legal clash between Binance and the CFTC began in March when the commission initiated a lawsuit against the exchange. 
The CFTC’s allegations included the offering of unregistered derivatives products in the United States, encompassing cryptocurrency trading services, futures, and options products. 
Additionally, the CFTC accused Binance of inadequate supervision, lack of a reliable Know Your Customer (KYC) or Anti-Money Laundering (AML) program, and failure to register as a futures commissions merchant, designated contract market, or swap execution facility. 
In addition to the CFTC lawsuit, Binance has been facing further legal challenges in the United States due to a separate lawsuit filed by the Securities and Exchange Commission (SEC) in June. 
The outcome of the motion to dismiss will undoubtedly be critical for Binance, CZ, and the regulatory landscape surrounding cryptocurrency exchanges in the United States. 
As the legal battle continues, industry observers and stakeholders await further developments in this high-profile case. 
Other Stories: 
<a href="https://www.cryptointelligence.co.uk/best-crypto-projects-invest-next-bull-run/" rel="noopener noreferrer nofollow">Best Crypto Projects to Invest in For The Next Bull Run</a> 
<a href="https://www.cryptointelligence.co.uk/ripples-chief-legal-officer-dismisses-concerns-of-sec-appeal-predicts-further-victory/" rel="noopener noreferrer nofollow">Ripple’s Chief Legal Officer Dismisses Concerns of SEC Appeal, Predicts Further Victory</a> 
<a href="https://www.cryptointelligence.co.uk/tennessee-realtor-couple-charged-in-6m-blessings-of-god-thru-crypto-investment-fraud/" rel="noopener noreferrer nofollow">Tennessee Realtor Couple Charged in $6M ‘Blessings of God Thru Crypto’ Investment Fraud</a>

Binance and CEO CZ Seek Dismissal of CFTC Lawsuit, Alleging Regulatory Overreach

Crypto Intelligence

Other articles published on Jul 29, 2023

XRP Ledger’s Layer 2 Platform Inches Closer to Launch with Evernode’s Strides

Analyst Predicts Bear Market End for Altcoin Group!

Eli Lilly And Co. (LLY) Stock Price Shows Weekly Price Decline

Traders Remain Interested in XRP Despite Recent Price Pullbacks

Palau taps Ripple to launch government-backed stablecoin

'FAANG of DeFi Assembling,' Seasoned Crypto VC Says

Join our free newsletter for daily crypto updates!