Binance and CZ challenge CFTC lawsuit and seek dismissal
Binance said the CFTC is trying to regulate foreign individuals and entities operating outside the United States, going beyond the limits of its legal competence.< /p>
The crypto exchange Binance and its CEO Changpeng "CZ" Zhao have requested the dismissal of a lawsuit filed by the United States Commodity Futures Trading Commission (CFTC).
In a July 27 court filing, lawyers for Binance and CZ accused the CFTC of overstepping its regulatory authority and engaging in excessive regulation. The filing indicates that the CFTC attempts to regulate foreign individuals and corporations operating outside the United States, which exceeds the limits of its legal jurisdiction and interferes with well-established principles of comity with foreign sovereigns.
Capture screen shot of motion to dismiss CFTC lawsuit. Source: CourtListenerAccording to the record, the first six charges presented by the CFTC do not relate to the foreign conduct addressed in the case, and some charges do not meet the required legal standards. Additionally, the seventh charge, accusing Binance of evading the Commodities Exchange Act (CEA), should be dismissed as the agency does not meet the requirements for such a charge.
The motion to dismiss argues that the CFTC has no regulatory authority over spot trading domestically and internationally. He questions whether Binance․com should be subject to specific registration and regulatory compliance provisions in the CEA and CFTC regulations based on its introduction of additional products after 2019 and its previous restriction on US users.
Related: SEC adopts cyberattack disclosure rules, list...
Binance said the CFTC is trying to regulate foreign individuals and entities operating outside the United States, going beyond the limits of its legal competence.< /p>
The crypto exchange Binance and its CEO Changpeng "CZ" Zhao have requested the dismissal of a lawsuit filed by the United States Commodity Futures Trading Commission (CFTC).
In a July 27 court filing, lawyers for Binance and CZ accused the CFTC of overstepping its regulatory authority and engaging in excessive regulation. The filing indicates that the CFTC attempts to regulate foreign individuals and corporations operating outside the United States, which exceeds the limits of its legal jurisdiction and interferes with well-established principles of comity with foreign sovereigns.
Capture screen shot of motion to dismiss CFTC lawsuit. Source: CourtListenerAccording to the record, the first six charges presented by the CFTC do not relate to the foreign conduct addressed in the case, and some charges do not meet the required legal standards. Additionally, the seventh charge, accusing Binance of evading the Commodities Exchange Act (CEA), should be dismissed as the agency does not meet the requirements for such a charge.
The motion to dismiss argues that the CFTC has no regulatory authority over spot trading domestically and internationally. He questions whether Binance․com should be subject to specific registration and regulatory compliance provisions in the CEA and CFTC regulations based on its introduction of additional products after 2019 and its previous restriction on US users.
Related: SEC adopts cyberattack disclosure rules, list...
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