CFTC Commissioner Shares Bleak Outlook On Binance’s Future

The discussions come in the wake of charges that the CFTC initially filed against Binance on March 27, 2023, alleging that the popular cryptocurrency exchange solicited U.S. users to trade derivatives illegally.

CFTC Commissioner Kristin Johnson has stated that her agency has been in conversation with Binance to give them the opportunity to explain their conduct and work together to find a way forward. While she has not made any definitive statements regarding the course of litigation, Johnson did reveal that the CFTC typically has preliminary conversations with companies before launching litigation.

Despite Binance’s initial response to the charges, where they pledged to cooperate with U.S. regulators, and a number of subsequent discussions between the two parties, the CFTC has not yet found a satisfactory resolution to the matter. Johnson noted that the discussions with Binance have been focused on addressing the exchange’s “potentially problematic” actions but that the parties have not yet decided whether to settle the case out of court or to proceed with litigation.

In light of this ongoing legal dispute, Johnson has called for more cryptocurrency regulation from U.S. Congress, specifically around spot trading. She believes that such regulations would fall under the jurisdiction of the CFTC and would help to clarify the legal status of exchanges like Binance. While there is currently no immediate path forward in the case, Johnson remains optimistic that a solution can be found through continued discussions with Binance and other stakeholders in the cryptocurrency industry.

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