No 'immediate path forward': CFTC is talking to Binance after launching legal action, official says

cnbc.com:

A Commodity Futures Trading Commission official said Tuesday that she hopes to find a «path forward» in the regulator's legal battle with crypto exchange Binance, noting that no decision has been taken yet on whether to settle the case or take it to court.

Kristin N. Johnson, commissioner at the CFTC, said that the regulator has been in conversations with Binance to address its concerns about the company's conduct.

The CFTC sued Binance, its CEO Changpeng Zhao and its former chief compliance officer last month, alleging the platform solicited users in the U.S. through its platform and allowed them to trade derivatives despite not being authorized to do so.

Binance said it would stop operating in the U.S. in 2019.

«I want to be really careful not to prejudge what will actually happen in the litigation. And I want to say that typically, in the context of any litigation, we are always ready to have conversations and typically even ahead of the litigation,» Johnson said in an interview with CNBC's Arjun Kharpal Tuesday.

«We've been in continuing conversations with the business to describe what we understand is potentially problematic conduct and to give them an opportunity to explain that conduct and to help us find a path forward.»

«As of the moment, we can conclude that there is not an immediate path forward,» she added. «That doesn't mean there couldn't be one and hopefully there will be one.»

Her comments mark a rare statement on the Binance suit to media since the CFTC first announced it was suing the company on Mar. 27.

Binance was not immediately available when contacted by CNBC. In a blog post following the complaint's filing, Zhao disagreed with the CFTC's findings and said the exchange was «committed to