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Here’s why CFTC suing Binance is a bigger deal than an SEC enforcement

Published 03/28/2023, 06:20 AM
Updated 03/28/2023, 08:00 AM

The United States Commodity Futures Trading Commission (CFTC) sued crypto exchange Binance for trading and derivatives laws violations. The lawsuit, filed on March 27, alleged that the global crypto exchange offered its derivatives trading services to U.S. customers without applying for a derivatives license.

The lawsuit from the commodities watchdog in the U.S. took many by surprise, with market observers and reporters claiming it to be a political move. Eleanor Terrett, a Fox news reporter, tweeted that sources close to the CFTC suggest the commodities regulator decided to go for a lawsuit to show the Securities and Exchange Commission (SEC) that this is a commodities issue rather than a securities one.

An excerpt from the CFTC lawsuit. Source: CFTC

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