28 February, 2024



Binance Argues to Dismiss CFTC’s Lawsuit: Grayscale Pushes SEC for a Fair ETF Approval

7 months ago

21 Nov, 2023

  • Binance filed a motion to dismiss the CFTC’s allegations of the company violating federal laws.
  • Grayscale urged the US SEC to approve all BTC spot ETF applications fairly and orderly.
  • To avoid any disparity, Grayscale argued that the market, and investors, all spot bitcoin ETF applications should be approved simultaneously.

The popular crypto exchange Binance has raised its voice against the Commodity Futures Trading Commission’s (CFTC) allegations of the company regarding the violation of federal regulations. Another notable incident that the crypto space witnessed recently is the crypto fund manager Grayscale’s push on the US Securities and Exchange Commission (SEC) to approve all the Bitcoin ETF proposals fairly.

According to a recent report, Binance and its chief Changpeng Zhao filed a motion in the US federal court to dismiss the CFTC’s complaint against the company. Earlier this year, the commission sued Binance, Zhao, and the company’s former Chief Compliance Officer Samuel Lim alleging that the company violated the Commodity Exchange Act and federal laws while operating an “illegal” exchange and “sham” compliance program.

While reacting against the CFTC lawsuit, Binance urged the court to dismiss the complaint. The statement read:

The CFTC seeks to regulate the overseas activities of foreign corporations and individuals based on conclusory allegations that fail to establish jurisdiction over the defendants, fail to establish that the CFTC can enforce the provisions cited in the complaint extraterritorially, and fail to plead essential elements of its claims. The Court should dismiss the complaint in its entirety.

Meanwhile, Grayscale urged the SEC to move forward with an unbiased approval of all the BTC exchange-traded funds (ETFs) applications at the same time to avoid any disparities. The platform asserted, “At Grayscale, we believe that for the benefit of Bitcoin, the market, and investors, all spot Bitcoin ETF applications should be approved simultaneously”.

In a letter, Grayscale’s legal team argued that the regulators’ decision should not be a distinction between “winners and losers”. The letter also pointed out that the spot ETFs are “inextricably linked” to Futures ETFs, adding that the regulators could approve the spot ETFs on the same basis they approved the latter.

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