– Binance and CEO Changpeng “CZ” Zhao are seeking the dismissal of a lawsuit filed by the CFTC.
– Attorneys for Binance and CZ argue that the CFTC is exceeding its regulatory authority and engaging in regulatory overreach.
– The CFTC is accused of attempting to regulate foreign individuals and corporations operating outside the United States, which goes beyond its jurisdiction.
– The charges presented by the CFTC do not pertain to the foreign conduct addressed in the case, and certain charges do not meet required legal standards.
– Binance argues that the CFTC lacks regulatory authority over spot trading domestically and internationally.
– Binance is also facing legal challenges in the U.S. from a lawsuit filed by the SEC in June.
Crypto exchange Binance and its CEO Changpeng “CZ” Zhao have requested the dismissal of a lawsuit filed by the United States Commodity Futures Trading Commission (CFTC). In a court filing, attorneys for Binance and CZ accuse the CFTC of exceeding its regulatory authority and engaging in regulatory overreach. They state that the CFTC is attempting to regulate foreign individuals and corporations operating outside the United States, which goes beyond its statutory jurisdiction and interferes with well-established principles of comity with foreign sovereigns.
The filing argues that the charges presented by the CFTC do not pertain to the foreign conduct addressed in the case, and certain charges do not meet the required legal standards. The seventh charge, accusing Binance of evading the Commodity Exchange Act (CEA), should be dismissed as the agency fails to satisfy the requirements for such an accusation.
The motion to dismiss also questions the CFTC’s regulatory authority over spot trading domestically and internationally. It raises the issue of whether Binance.com should be subject to specific registration and regulatory compliance provisions in the CEA and CFTC regulations based on its introduction of additional products after 2019 and its previous restriction on U.S. users.
In addition to the CFTC lawsuit, Binance is also facing legal challenges in the U.S. from a lawsuit filed by the Securities and Exchange Commission (SEC) in June.
Image Source: [CourtListener](https://storage.courtlistener.com/recap/gov.uscourts.ilnd.431767/gov.uscourts.ilnd.431767.59.0.pdf)
