Binance Asks US Court to Dismiss CFTC’s Lawsuit
Binance has submitted a motion to the U.S. District Court for the Northern District of Illinois, urging the dismissal of the lawsuit made by the US Commodity Futures Trading Commission (CFTC). Binance’s argument in its appeal centres around the assertion that the regulatory body is overreaching its authority by attempting to regulate the activities of foreign individuals and companies operating outside the borders of the United States.
The CFTC had initiated a lawsuit against Binance in March 2023, alleging that the exchange was in violation of federal laws governing US commodity markets and had failed to register appropriately. Furthermore, the legal action extends its reach to involve Binance’s CEO, Changpeng Zhao, and the former Binance’s compliance chief, Samuel Lim.
Changpeng Zhao expressed his disappointment with the CFTC’s actions and emphasised that the Commission was attempting to attribute the actions of Binance’s foreign branches to a single legal entity. Notably, in the last month, Binance’s CEO had already filed a motion to seek the dismissal of a lawsuit from the US Securities and Exchange Commission, asserting that the regulator was exceeding its authority.
According to legal representatives of Binance, the Congress did not grant the CFTC the authority to extend its jurisdiction beyond the limits defined by the existing laws. In their appeal to the court, they assert that the CFTC is attempting to leverage this case as a means to gain more control over the crypto sphere beyond U.S. borders, potentially causing significant effect for the global crypto market.
In response to this situation, Binance has announced its intention to concentrate on expanding its business in Latin America, particularly in Argentina, where the implementation of crypto broker licensing regulations is anticipated.
Previously, analysts from Chainalysis said that despite a series of adverse events and regulatory challenges, the United States continues to maintain its lead in the global ranking of crypto adoption and usage.