Binance starts the fight against CFTC and its March lawsuit.
Cryptocurrency exchange Binance and its CEO Changpeng Zhao, widely known as "CZ," aim to counter a lawsuit initiated by the United States Commodity Futures Trading Commission (CFTC).
On July 27th, Binance and CZ recently submitted a legal filing arguing against the CFTC's claims.
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The defendants' primary contention is that the CFTC has overreached its regulatory boundaries and infringed upon the rights of foreign entities and individuals operating outside the US. According to the firm, CFTC accusations violate the regulator's statutory jurisdiction and disrupt the principles of foreign sovereignty harmony.
In the legal documents, Binance and CZ argue that the CFTC's first six charges bear no relevance to the international activities under scrutiny in the current case. They also state that several accusations don't fulfill the necessary legal requirements.
Binance's request to dismiss also points out that the seventh charge, where Binance is accused of bypassing the Commodity Exchange Act (CEA), should be removed as the regulator does not meet the criteria for making such an allegation.
The dismissal motion questioned CFTC's authority over spot trading within the US and globally. It also scrutinizes whether Binance.com should fall under the specific registration and regulatory compliance stipulations outlined in the CEA and CFTC regulations.
The CFTC originally filed the lawsuit against Binance in March. The allegations centered around Binance providing unregistered derivatives products in the US. Moreover, the CFTC accused Binance of failing to ensure adequate oversight, lacking a dependable Know Your Customer or Anti-Money Laundering program, and not gaining appropriate registration.
On top of the CFTC lawsuit, Binance is simultaneously grappling with legal complications in the US, originating from a lawsuit filed by the Securities and Exchange Commission in June.
As the pressure mounts on Binance, the crypto community is closely watching how this legal drama unfolds and what it may mean for the future of the industry.
