The case of the Commodity Futures Trading Commission (CFTC) crypto exchange Binance has changed the narrative in the market. CFTC chairman Rostin Behnam has made it clear that they will be tough on their lawsuit against Binance for violating US regulations.
Is the Binance CFTC lawsuit enough to affect the crypto downtrend?
The Commodity Futures Trading Commission (CFTC) lawsuit against crypto exchange Binance changed the narrative in the market. But we’ll see if the move still has enough legs to impact a major downtrend in cryptocurrency prices. Although the news of the lawsuit led to a significant drop in Bitcoin price, it continues to hold the resistance above the $26,600 level. Meanwhile, the crypto community is debating about the impact of CFTC action, which is in stark contrast to how the US Securities and Exchange Commission (SEC) views major cryptocurrencies.
cryptocoin.comThe Binance lawsuit comes less than a week after the SEC issued a Wells Notice to Coinbase. The notice was about concerns about listed digital assets, staking services and other things.
Binance CFTC case FUD over?
Despite the FUD regarding the Binance lawsuit, bitcoin price managed to stay above the strong support level of $26,600. Crypto analyst Crypto Tony warned of this critical level after Binance news broke. Meanwhile, another analyst, Alex Kruger, said that the CFTC’s enforcement actions have traditionally not had a huge impact on the crypto market. “CFTC actions have historically had no effect,” Kruger said. Binance news brought welcome short-term volatility. But it is unlikely to start a trend,” he comments.
CFTC Chairman declares war on Binance
Rostin Behnam, head of the Commodity Futures Trading Commission (CFTC), said on Tuesday that Binance’s continued efforts to circumvent US regulations and allow US citizens to use the platform using VPN are part of an ‘ongoing scam’. The CFTC has filed a lawsuit against cryptocurrency exchange Binance and its CEO, Changpeng Zhao, alleging that they knowingly marketed unregistered crypto derivatives in the country.
In an interview broadcast on CNBC, the CFTC chairman stated that the Binance exchange deliberately circumvented the CFTC’s registration requirements by instructing customers on how to connect to the exchange without disclosing their location in the United States. He also noted that as Binance has never registered with the commodity watchdog, it is not legally authorized to offer trading of cryptocurrency futures in the US.
In addition, Behnam stressed that Binance’s lack of a registered headquarters does not allow it to evade US regulations. Indeed, the regulator is now more willing to follow the exchange with tighter scrutiny. Talking about the investigation, the CFTC chief said:
This was an ongoing scam from 2019 and an ongoing violation of the Commodity Exchange Act. This seemed like a pretty clear avoidance situation and something we needed to step up aggressively and do it as quickly as possible. We’re pretty confident in this situation, it’s something we clearly care about a lot and we’ve been at the top of this crypto space for several years now.
Binance’s ongoing legal hurdles
Court records presented on Monday included Binance’s internal discussions, including one of Samuel Lim, who continues to serve as the exchange’s senior compliance officer until January 2022. Lim allegedly suggested this by stating, “On the surface, we can’t seem to have US users, but in reality we have to get them in other creative ways.”
Binance and its founder, Changpeng Zhao, denied the accusations made by the CFTC and showed their intent to oppose the supervisory agency’s lawsuit, which was filed in a federal court in Chicago. At press time, Binance’s native cryptocurrency, BNB, was changing hands at $313.5, up 1.93% in the last 24 hours.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.