7 details in the CFTC lawsuit against Binance you may have missed
The surprise lawsuit from the Commodity Futures Trading Commission (CFTC) against crypto exchange Binance sent shock waves across the markets today.
In addition to allegations of market manipulation and a lack of compliance effort, the regulator has also accused the exchange of not cooperating with investigative subpoenas and obscuring the location of its executive offices. Binance has rejected many of the allegations.
However, the devil is in the details when it comes to the 74-page complaint. Here are a few interesting snippets you may have missed.
Contrary to assertions by the United States Securities and Exchange Commission chief Gary Gensler on crypto assets, the latest CFTC lawsuit has labeled Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Tether (USDT) and Binance USD (BUSD) as commodities.
Earlier this year, the SEC argued that BUSD is an “unregistered security” in its Wells notice against Paxos. Gensler on many occasions has also argued that virtually all crypto assets are securities, with the exception of Bitcoin.
BTC: commodityETH: commodityLTC: commodityUSDT: commodityBUSD: commodity - the CFTC pic.twitter.com/Y3qi6vDmTA
Sheila Warren, CEO of the Crypto Council for Innovation said the statement is a “powerful shot across the bow of the SEC” and could have significant implications for the industry and for which regulator will have ultimate authority.
Meanwhile, Coinbase Chief Legal Officer Paul Grewal criticized the lack of agreement between the two U.S. regulators, stating:
Binance CEO Changpeng Zhao has been named as a defendant and has been repeatedly singled out throughout the complaint.
Interestingly, the CFTC stated it was been able to gather evidence by collecting Signal text chains and group chats from
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