In March this year, the U.S. Commodity Futures Trading Commission (CFTC) filed a civil lawsuit against Binance and Changpeng Zhao, accusing the defendants of illegally providing derivatives transactions and violating regulatory rules.
Seeking to impose a permanent trading and registration ban on Binance and its related entities, prohibiting transactions and control of commodity interests and cryptocurrency commodities.
Binance and Changpeng Zhao formally submitted a motion to the court this week, seeking to dismiss the lawsuit filed by the CFTC and refute the CFTC’s accusations one by one.
Binance’s legal team stated: If the CFTC’s regulatory arguments are accepted by the court, it will enable the CFTC to regulate all cryptocurrency activities related to derivative products globally, implying that this will allow the CFTC to overextend its powers and have a blow to industry development. .
CFTC once again emphasizes its authority to enforce laws!
After Binance attempted to dismiss the CFTC charges, CFTC Commissioner Summer Mersinger said in a recent interview with CoinDesk TV that she was very limited in what she could say about the ongoing case.
But she still emphasized that although the CFTC does not have the regulatory power to regulate the spot market, it has broad enforcement powers when it comes to fraud and manipulation in the commodity market:
That's the enforcement powers that we used in this case, which are quite broad and we do have the authority to step in and bring charges of fraud and manipulation if it involves U.S. persons or the U.S. market.
Summer Mersinger pointed out that the CFTC often finds that there are many platforms that claim not to provide products to Americans and have disclosures or disclaimers on their websites, but in fact, these platforms provide users with instructions on how to use VPNs:
In fact, we have seen many cases.
Binance’s “market share” among non-USD exchanges plummeted from 74% to 50%
Binance also faces legal troubles with other U.S. regulators as it seeks to have the CFTC lawsuit dismissed.
In June this year, the U.S. Securities and Exchange Commission (SEC) sued Binance and Changpeng Zhao and filed 13 charges, including operating an unregistered exchange and illegally providing and selling securities to U.S. investors. Binance was also reported to be in danger of being prosecuted by U.S. judicial authorities. The Ministry filed a criminal complaint.
In Europe, Binance has also been investigated by regulatory agencies in many countries. Officials from the European Securities and Markets Authority (ESMA) recently stated that ESMA’s next important task is to ensure that cryptocurrency exchange giants such as Binance will not violate the "Cryptoasset Market Supervision" Law", exploiting loopholes to avoid supervision.
As Binance continues to face regulatory suppression, The Block data shows that Binance’s market share among non-USD exchanges has dropped from 74% in December 2022 to 50% in October this year, indicating that regulatory suppression is indeed Have a real impact on Binance’s trading activity.
There was the SEC before and the CFTC later. It has to be said that the regulatory pressure faced by Binance is already full!
It can be seen that regulatory FUD has indeed had a great impact on Binance. In the recent rising market, BNB has also languished.
In early November last year, FTX, the world's second largest exchange, suffered a thunderstorm, which caused the currency circle to collapse. This year, November is coming soon. The market has just improved, but don't let anything happen again!
The market can no longer withstand the blow of the black swan, CZ holds on!
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