- Cryptocurrency exchange Binance has formally filed a motion to dismiss the CFTC’s lawsuit.
- The company insists the regulator overstepped its authority.
- The commission accused the platform of violating industry laws by offering derivative cryptocurrencies through shell firms.
On Thursday, July 27, 2023, cryptocurrency exchange Binance filed a motion to dismiss the Commodity Futures Trading Commission (CFTC) lawsuit. The company said the agency exceeded its authority to regulate spot trading in digital assets.
We previously reported that the firm was preparing a similar appeal. As expected, the petition cited the organization’s CEO Changpeng Zhao and Binance’s head of regulatory compliance Samuel Lim.
The exchange’s main argument is that the CFTC exceeded its authority:
“The Commission clearly does not have the full regulatory authority over the cryptoasset spot market not only in the United States, but also in the global market.”
In its appeal, the company emphasized, the CFTC’s claim that it violated the Commodity Exchange Act (CEA) and the agency’s industry rules is baseless.
In addition, the petition points out that Binance does not actually operate in the U.S. market, and Changpeng Zhao does not live in the U.S..
The first six counts of the CFTC’s charging order “do not relate to the foreign activities mentioned in the lawsuit,” and some of them do not meet the standards of law at all, the organization says. The regulator filed suit against the exchange and its CEO in March 2023. The company was accused of violating industry laws by promoting derivative cryptocurrencies through shell brokers.
The company was accused of violating industry laws by promoting derivative cryptocurrencies through shell brokers.