Binance claims the CFTC is using it to forward its own crypto regulatory agenda
Just recently, Binance filed a written response with the court, in which it accused the Commodity Futures Trading Commission (CFTC) of filing this lawsuit in an effort to expand its jurisdiction over cryptocurrencies outside the United States.
The cryptocurrency trading platform says the government is overreaching its authority by trying to regulate international persons and businesses that are based outside the United States.
As the authors put it: According to the brief, “Congress did not make the CFTC the world’s derivatives police, and the Court should reject the agency’s effort to expand its territorial reach beyond what is permitted by law.”
In March, the US Commodity Futures Trading Commission (CFTC) sued Binance for breaches related to derivatives trading.
Binance.com, an international platform that, in principle, should not function in the US, is at issue here, not Binance.com, a subsidiary of Binance that conducts a cryptocurrency exchange for US citizens.
In the United States, the markets for commodities and financial derivatives are overseen by the Commodity Futures Trading Commission. Binance.com is a foreign firm that has no business providing its services to people in the United States.
However, Binance is being sued by the CFTC for allegedly breaking the law by providing services to people in the United States. Binance.com would have been used in this scenario instead of Binance.com (US), which has the necessary license to serve customers in the United States.
As a matter of fact, Binance US does not provide consumers with the option to trade crypto futures, instead only providing spot trading. As a result, the CFTC’s accusations cannot be linked to services that Binance US does not provide.
Binance.com, a global exchange, also facilitates futures trading, which has seen daily turnover of $50 billion, compared to only $12 billion for spot trading, in the last 24 hours.
In principle, US citizens shouldn’t be allowed to trade crypto futures on Binance since they shouldn’t use Binance.com but rather Binance US.
The Commodity Futures Trading Commission, on the other hand, claims that the overseas exchange gives Americans access to a market where they aren’t allowed to trade crypto derivatives.
In response to these claims, the international exchange has maintained that the US agency is only trying to expand its authority outside American borders.