Binance Challenges CFTC Lawsuit Overreach

The Binance cryptocurrency exchange and its CEO, Changpeng “CZ” Zhao, are once again challenging the Commodity Futures Trading Commission (CFTC) of the United States.

They have filed documents seeking dismissal of a lawsuit filed by the regulator in March. In a document submitted to the United States District Court for the Northern District of Illinois on October 23, their attorneys questioned the CFTC’s global regulatory scope.

Specifically, they contend that the CFTC could regulate any global cryptocurrency activity involving a derivatives product based on its logic.

The filing emphasized that “Congress did not make the CFTC the world’s derivatives police,” highlighting the perceived overreach. In addition, the legal representatives of Binance and CZ meticulously evaluated each CFTC charge.

They emphasized that the regulator’s approach “pursued a novel theory,” particularly in their anti-evasion claim. As a result, the attorneys believe that many of these counts do not satisfy standard criteria.

In light of this, the counsel urged the court to “dismiss the complaint with prejudice.” However, this is not the first time Binance has requested the case be dismissed.

In July, they presented a similar argument, highlighting the CFTC’s regulatory overreach. In addition, it is essential to note that Binance is subject to scrutiny from another major actor, the Securities and Exchange Commission (SEC) of the United States.

In June, they filed a lawsuit against the cryptocurrency titan. In addition to its legal battles, Binance has actively improved its platform offerings.

It recently announced a future support feature for Circle’s native USDC stablecoin. This integration will utilize the Polygon blockchain network.

Notably, the exchange will shortly enable deposits and withdrawals for USDC, ensuring users receive timely notifications.

Binance has already provided support for the coin’s version, USD Coin (PoS) (USDC.e). It will henceforth be recognized under the ticker symbol MATICUSDCE.