CFTC Commissioner: No ‚Immediate Path Forward‘ with Binance
• The Commodities and Futures Trading Commission (CFTC) has filed charges against Binance, accusing it of illegally soliciting U.S. users to trade derivatives.
• CFTC Commissioner Kristin Johnson said the regulator is in conversation with Binance to “find a path forward.”
• Binance responded by stating that the charges were “unexpected” and pledged to cooperate with U.S. regulators.
CFTC Files Charges Against Binance
The Commodities and Futures Trading Commission (CFTC) has filed charges against cryptocurrency exchange Binance, accusing it of illegally soliciting U.S. users to trade derivatives without registering as a broker-dealer or futures commission merchant in the country first.
CFTC Commissioner in Talks With Binance
CFTC Commissioner Kristin Johnson said the regulator is in conversation with Binance to “give them an opportunity to explain that conduct and to help us find a path forward.“ She added that she does not want to prejudge the course of litigation but noted that the CFTC typically has conversations with companies before launching enforcement actions such as this one.
In response, Binance stated that the charges were “unexpected” and pledged to cooperate with U.S. regulators on finding a way forward from this situation.
Anonymity In Crypto Is A National Security Risk
Meanwhile, another CFTC official recently warned about anonymity in crypto being a national security risk during a virtual hearing held by the House Financial Services Committee on April 21st, 2021. Michael Dalton, CFTC General Counsel for Enforcement Division, spoke at length about how anonymity could be exploited by criminals who use cryptocurrencies for money laundering purposes or other illicit activities on darknet markets or other online forums..
Ultimately, while both sides are currently talking out their differences and looking for a mutually beneficial solution going forward, only time will tell what will happen next between these two parties as they negotiate terms of resolution regarding this case