In a recent media interaction, a top official at the United States Commodities and Futures Trading Commission (CFTC) provided an update on the agency’s ongoing case against Binance, the world’s largest crypto exchange.
Kristin Johnson, CFTC Commissioner, stated that the agency is in conversation with Binance giving them the chance to clarify their actions. In her words:
We’ve been in continuing conversations with [Binance] to … give them an opportunity to explain that conduct and to help us find a path forward.
She also said that the regulatory agency has specifically been in conversation with Binance over its “potentially problematic” actions but that those discussions have not been successful.
Johnson said that she does not want to prejudge the course of litigation but noted that the CFTC typically has conversations with companies before launching litigation. Johnson added that the two parties have not decided to settle the case or go to court and said that “there is not an immediate path forward” at present.
The case of Binance and CFTC started around a month ago. On March 27, the CFTC first filed charges against Binance. The regulator accused Binance of soliciting U.S. users to illegally trade derivatives. Apart from its initial announcement, and until today, the regulator has said little else about the matter.
On the other hand, Binance responded to the CFTC by stating that the charges were “unexpected” and pledged to cooperate with U.S. regulators. The firm also expressed disappointment that the firm has been in constant touch with the regulators regarding crypto regulations.
Speaking at a fireside chat that took place at the DeCenter Spring Conference at Princeton University, the CFTC chair said that Binance’s management knowingly operated outside of U.S. laws governing the exchange of commodities and futures. As per media reports, Behnam told the audience that Binance leaders had intentionally defied the federal rules concerning operations.
Johnson also called for more cryptocurrency regulation from the U.S. Congress, especially laws around spot trading that might fall under the CFTC’s jurisdiction. As the regulators have been cracking down on the crypto entities, it is important to note the tussle and lack of clarity between the regulators have created significant confusion for the firms and the larger industry.
The need for crypto regulation has been highlighted by lawmakers, industry participants as well as regulators. Prior to this, in the DC Blockchain Summit, Summer Mersinger, CFTC commissioners, highlighted the importance of interference from Congress to ensure cooperation with the CFTC when drafting crypto legislation.