Binance, the world’s largest cryptocurrency exchange, argued in a court filing on Monday that the U.S. Commodity Futures Trading Commission (CFTC) is overstepping its boundaries by trying to police global cryptocurrency activities.
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Fast facts
- In March, the CFTC accused Binance of offering unregistered crypto derivatives to U.S. customers.
- The CFTC is the U.S. commodities regulator that oversees the nation’s derivatives markets, such as futures and options.
- Binance filed a statement in an Illinois court on Monday in response to the CFTC. The exchange said that while U.S. law applies within its borders, it doesn’t have the authority to regulate activities across the globe. Binance criticized the CFTC’s “broad arguments” and stated that the agency was not the “world’s derivatives police.”
- Binance claimed that its U.S. operations, conducted under Binance.US, are separate. The company argues that only this domestic segment should be under U.S. regulatory scrutiny.
- Binance also faces regulatory scrutiny from the U.S. Securities and Exchange Commission, which has accused the exchange of violating local securities rules.
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