In what may be the first sign of the slightly easing crypto market environment, the Commodity Futures Trading Commission (CFTC) official said, Binance He offered to take his case to a logical conclusion.
In early March 2023, crypto exchange Binance and its CEO, Changpeng “CZ” Zhao, were sued by the CFTC for regulatory violation. The lawsuit was filed for alleged violations of trading and derivatives rules in the United States. This is Binance’s largest by far crypto- Considering that it is an exchange, it means one of the biggest enforcement actions against a crypto market business.
Meanwhile, US-based exchange Coinbase has filed a new lawsuit against the US Securities and Exchange Commission (SEC), forcing the agency to respond to a petition it filed last year. The exchange’s rulemaking petition demanded that the SEC write regulations explaining how securities laws would apply to digital assets.
CFTC Binance Litigation Settlement
As Koinfinans.com reported, CFTC commissioner Kristin Johnson announced that she is in talks with Binance regarding the agency’s activities. Adding that there is hope of finding a way forward in the case, the commissioner told CNBC that it has not yet been decided whether the case will be taken to court or a settlement. The lawsuit alleged that the exchange violated regulations regarding trading and derivatives.
“We are in constant conversations with the business (Binance) to identify behaviors that we understand to be potentially problematic and to give them the opportunity to explain those behaviors and help us find a way forward.”
It may be recalled, however, that CZ denied the CFTC’s allegations that it had violated the law. So it will be interesting to see how common ground can be reached between the two sides.