Binance Pushes Back on CFTC Lawsuit with New Filing

Binance cryptocurrency exchange and its CEO Changpeng “CZ” Zhao are again challenging the United States Commodity Futures Trading Commission (CFTC). They have filed statements aiming to dismiss a lawsuit presented by the regulator earlier in March. 

In an October 23rd document to the U.S. District Court for the Northern District of Illinois, their lawyers have questioned the CFTC’s global regulatory reach. Specifically, they argue that by the CFTC’s logic, it could regulate any global cryptocurrency activity tied to a derivatives product. “Congress did not make the CFTC the world’s derivatives police,” emphasized the filing, highlighting the perceived overreach.

Binance Urges Dismissal of CFTC Case

Moreover, the legal representatives of Binance and CZ meticulously critiqued each count raised by the CFTC. They underscored the regulator’s approach as “pursuing a novel theory”, especially in their anti-evasion claim. Consequently, the lawyers believe many of these counts fail to meet standard criteria. Hence, the attorneys strongly urged the court to “dismiss the Complaint with prejudice”.

However, this is only one instance where Binance has asked for the case to be dropped. In July, they presented a similar argument, emphasizing that the CFTC surpassed its regulatory bounds. Additionally, it’s essential to note that Binance faces scrutiny from another key player, the U.S. Securities and Exchange Commission (SEC). They lodged a lawsuit against the crypto titan in June.

Polygon Network Hosts Binance USDC Integration

Besides the legal battles, Binance has been actively enhancing its platform offerings. Recently, it declared an upcoming support feature for Circle’s native USDC stablecoin. This integration will be channeled through the Polygon blockchain network. Significantly, the exchange will soon activate deposits and withdrawals for USDC, ensuring timely notifications for its users. The coin’s version, USD Coin (PoS) (USDC.e), has already received backing from Binance. Henceforth, it will be recognized under the MATICUSDCE ticker.

Read Also: Ripple Labs Taps Uphold for Cross-Border Liquidity Service