Kristin N. Johnson, a commissioner at the Commodity Futures Trading Commission (CFTC), has stated that the regulatory body is in talks with Binance to address concerns about the cryptocurrency exchange’s conduct. The CFTC has sued Binance, its CEO Changpeng Zhao, and its former chief compliance officer, alleging that the platform solicited US users and allowed them to trade derivatives without authorisation. Binance has denied the allegations and said that it stopped operating in the US in 2019. Johnson said that the CFTC has not yet decided whether to settle the case or take it to court, but hopes to find a “path forward” with Binance.
Regulatory oversight of crypto industry in US
Johnson also said that she hopes Congress will introduce crypto-specific rules soon, and that the regulatory oversight of the crypto industry in the US needs to be carefully managed to allow for innovation and the introduction of new asset classes. She suggested that existing laws provide provision for understanding how securities laws would apply to digital assets, but that Congress needs to clarify how spot market oversight should be dealt with. The crypto industry remains largely unregulated, but calls for regulatory oversight have grown in the wake of the collapse of FTX and other industry collapses, which caused significant losses for investors. On Monday, Coinbase filed a lawsuit against the US Securities and Exchange Commission, demanding clarification on whether the crypto industry can be regulated under existing securities laws.
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