Lawyers representing Binance and its CEO, Changpeng “CZ” Zhao, have filed statements in help of a movement to dismiss a lawsuit filed by the United States Commodity Futures Trading Commission (CFTC) in March.
In an Oct. 23 submitting within the U.S. District Court for the Northern District of Illinois, CZ’s and Binance’s attorneys made a number of authorized claims arguing for the dismissal of the CFTC’s case towards the crypto change. According to the authorized groups, the regulator’s arguments, if accepted by the court docket, “would allow it to regulate any activity in cryptocurrency […] related to a derivatives product” throughout the globe.
“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 the law,” mentioned the submitting.
Binance’s and CZ’s attorneys additionally went after every of the person counts introduced by the CFTC, arguing the regulator was “pursuing a novel theory” in an anti-evasion declare and failed to meet the requirements for others. The attorneys referred to as on the court docket to “dismiss the Complaint with prejudice.”
The CFTC lawsuit, first filed in March, alleged that Binance failed to register with the regulator in violation of guidelines on derivatives buying and selling. According to the CFTC, CZ was conscious that Binance had solicited prospects primarily based within the United States, requiring the change to be in compliance with regulatory necessities.
Binance attorneys made an identical submitting in July to dismiss the case, arguing on the time that the CFTC exceeded its regulatory authority. The crypto change additionally faces a lawsuit from the U.S. Securities and Exchange Commission filed in June.