CFTC Official Hints At Settlement In Binance Lawsuit; What’s More

Crypto News: In what could perhaps be the first sign of a slightly easing crypto market environment, a Commodity Futures Trading Commission (CFTC) official on Tuesday hinted at taking the Binance lawsuit towards a logical conclusion. Earlier in March 2023, crypto exchange Binance and its CEO Changpeng “CZ” Zhao, have been sued by the CFTC over regulatory violation. The lawsuit was registered for allegedly breaking trading and derivatives rules in the United States. This meant one of the biggest enforcement actions against a crypto market business considering Binance is by far the largest crypto exchange.

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Meanwhile, US based exchange Coinbase filed a fresh lawsuit against the U.S. Securities and Exchange Commission (SEC) to push the agency to react to a petition it filed last year. The exchange’s rulemaking petition demanded that the SEC write regulations explaining how securities laws are applicable to digital assets.

CFTC Binance Lawsuit Settlement

Kristin Johnson, CFTC commissioner, revealed that the agency has been in talks with Binance over its operations. Adding that there was hope to find a path forward in the lawsuit, the commissioner said to CNBC whether it should be taken to courts or go for a settlement is yet to be decided. The lawsuit alleged that the exchange violated regulations pertaining to trading and derivatives

“We have been in continuing conversations with the business (Binance) to describe what we understand is potentially problematic conduct and to give them an opportunity to explain that conduct and to help us find a path forward.”

It may be recalled, however, that CZ rejected the CFTC’s claims about violating the law. Hence, it would be interesting to see how a common ground would be reached between the two parties.

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Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Reach out to him at [email protected]

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