Binance Continues to Seek Dismissal of the CFTC Suit
- Binance asked the court to dismiss the charges with prejudice.
- The CFTC charged Binance with providing illegal services to U.S. customers.
- Binance argued that the CFTC had overstepped its jurisdiction with its lawsuit.
Attorneys representing cryptocurrency exchange Binance and its CEO, Changpeng “CZ” Zhao, have submitted statements in favor of a move to dismiss the U.S. Commodities Futures Trading Commission (CFTC) lawsuit against both parties.
The lawyers claimed that if the court upholds the CFTC’s claims, it “would allow it to regulate any activity in cryptocurrency […] related to a derivatives product” globally. Binance further said the CFTC is attempting to regulate the global market by pursuing legal action against a company that has attempted to steer clear of U.S. business.
The exchange’s lawyers wrote in their filing:
The CFTC relies on new and broad arguments that would allow it to regulate any activity in cryptocurrency (or other assets) related to a derivative product anywhere on the globe. U.S. law governs domestically but does not control the world. Congress did not make the CFTC the world’s derivatives police.
The CFTC accused Binance in March of intentionally providing unregistered cryptocurrency derivatives. In a follow-up filing dated September 22, the agency stated that Zhao had “deliberately targeted” the US market. Binance’s lawyers urged the court to dismiss the CFTC’s complaint without prejudice.
This is not the first time Binance has sought a dismissal of the case. In July, the crypto exchange sought to dismiss the charges, claiming the CFTC’s lawsuit was “unexpected and disappointing.” Binance also faces serious charges from the US Securities and Exchange Commission (SEC). The regulator accused Binance of mismanaging its users’ funds.
In other news, the U.S. Securities and Exchange Commission has accused BlackRock Advisors, LLC, of misrepresenting some entertainment industry investments it features in its publicly traded fund. BlackRock has reportedly agreed to a $2.5 million settlement.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
