CFTC Commissioner Hasn’t Ruled Out A Settlement In Binance Lawsuit 14

CFTC Commissioner Hasn’t Ruled Out A Settlement In Binance Lawsuit

  • The CFTC is reportedly in communication with Binance over the ongoing lawsuit regarding the exchange’s conduct.
  • Commissioner Kristin Johnson revealed that the regulator hopes to find a path forward with the crypto exchange. 
  • The commissioner didn’t rule out the possibility of a settlement with the crypto exchange. 

The Commodities and Futures Trading Commission (CFTC) may choose to settle its lawsuit against the world’s largest crypto exchange Binance and its Chief Executive Changpeng Zhao. In an interview with CNBC, CFTC Commission Kristin Johnson revealed some positive developments in the case that may lead to a solution out of court in the future. 

CFTC Is Talking To Binance About The Lawsuit

According to a report by CNBC, CFTC Commissioner Kristin Johnson revealed that the commodities regulator has been in “continuing conversations” with Binance. The content of these conversations reportedly includes the regulator’s take on the potentially problematic business conduct of Zhao’s crypto exchange. The exchange has also been in talks with the CFTC to explain their side of the case in an effort to find a path forward. 

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.”

Kristin N. Johnson, CFTC Commissioner 

While no decision has been taken yet on whether to settle the lawsuit against Binance or not, Commissioner Johnson stated that she hopes to find a “path forward” in this matter. Her statement marked the first time that a CFTC official commented on the Binance lawsuit since it was filed on March 27, 2023. 

When asked about the regulatory landscape for crypto in the United States, the CFTC official stated that she was counting on Congress to come up with crypto-specific regulations soon. “Under immediately existing laws, there is provision to understand how securities laws would apply to any digital assets that qualify as securities. And those (are) the same in the context of commodities” she added.