Binance and CZ Challenge CFTC Lawsuit, Allege Regulatory Authority

Binance and CZ Challenge CFTC Lawsuit, Allege Regulatory Overreach

Binance and Changpeng "CZ" Zhao, its CEO, have filed statements to support a motion to dismiss a lawsuit by the US Commodity Futures Trading Commission (CFTC) reported in March. Their legal executive argued that the CFTC's case would permit it global authority to regulate cryptocurrency activities related to derivatives, which exceeds its decree. They also questioned individual counts in the lawsuit. The CFTC's suit summons Binance for failing to register and soliciting US customers, proclaiming non-compliance with derivatives trading rules. Binance formerly sought dismissal in July, contending the CFTC overstepped its regulatory boundaries. The exchange also faces a legal dispute with the SEC.