Binance files motion to dismiss US CFTC lawsuit, calls it agency overreach
- Binance filed a motion in response to the US Commodity Futures Trading Commission’s lawsuit against the crypto exchange platform.
- The exchange said in the motion that the CFTC is overreaching in suing Binance and CEO Changpeng Zhao.
- The CFTC alleges that the exchange offers unregistered crypto derivatives products, directing US customers to evade compliance controls through the use of VPNs.
Binance responded to the US Commodity Futures Trading Commission (CFTC) lawsuit against the exchange and its executives Changpeng Zhao and Samuel Lim in a recent filing. The crypto trading platform labels the CFTC’s charges as overreach in its motion to dismiss the independent agency’s lawsuit against Binance.
Amidst the intensifying regulatory crackdown on the exchange, the BNB Chain report for Q2 was released, highlighting the blockchain’s dominance with an average market share of 46.5% for verified smart contracts.
Despite the SEC and CFTC’s ongoing lawsuits against Binance, the exchange’s native blockchain has outperformed Ethereum with its massive market share acquisition.
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Binance responds to CFTC lawsuit in new motion filing
Binance, one of the largest cryptocurrency exchanges in the ecosystem, has been hit by one lawsuit after another in 2023. The exchange is currently battling charges brought by the US Securities & Exchange Commission (SEC) and the CFTC.
In March the CFTC alleged that Binance had offered unregistered crypto derivatives products and directed US customers to evade compliance controls through the use of VPNs. In its lawsuit the regulator charges Binance with violation of laws around offering futures transactions and illegal off-exchange commodity options among other charges.
Binance’s motion to dismiss the CFTC lawsuit
The exchange has responded to the CFTC’s allegations in its July 27 filing, stating that the agency has no regulatory authority over spot trading in the United States or overseas. The exchange’s motion to dismiss states that the issues posed by the CFTC’s complaint are not relevant since Binance․com had already begun to restrict and off-board potential US users in 2019.
Binance’s BNB chain performance is unaffected by legal woes
In BNB Chain’s Q2 report, it is clear that Binance’s legal trouble has failed to negatively influence the native blockchain’s market share and performance. BNB Chain dominated Ethereum in Q2 among blockchains with verified smart contracts, outperforming Ethereum's 31.3% market share by 15 percentage points.
The SEC and CFTC lawsuits against Binance have had, therefore, little to no negative impact on the exchange’s native blockchain and its performance in the second quarter .
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
