According to a Bloomberg report, Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam reprimanded Binance for intentionally violating regulatory rules and failing to keep Americans off the crypto exchange.
During an engagement at Princeton University, CFTC Chairman Rostin Behnam argues that Binance’s executives are “not simpletons.” They have established large corporations that offer futures contracts and derivatives to US clients without registering with the regulator.
“These are not unsophisticated individuals. They are starting large companies and offering futures contracts and derivatives to US customers.”
The CFTC filed charges against Binance, its CEO Changpeng Zhao, and related parties on March 27 for violating US law by unlawfully offering trading and derivatives services to US clients.
The CFTC accused Binance of wrongdoing regarding private communications, failure to implement geoblocking, and knowledge of illegal customer activity.
Rostin Behnam, chairman of the CFTC, asserts that Binance intentionally violated regulations. Binance offered derivatives trading in the United States despite being aware that registration with the CFTC was required before offering such contracts.
In addition, the CFTC Chief reaffirmed that Bitcoin, Ether, and stablecoins like USDC are commodities. Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC) are defined as commodities by the CFTC in the latest crypto fraud and misappropriation case against Rashawn Russell, an investment banker at Deutsche Bank.
Earlier, Rostin Behnam made it abundantly evident that they would pursue Binance vigorously for violating US regulations. Internal Revenue Service, federal prosecutors, and the Securities and Exchange Commission are conducting a comprehensive Binance (SEC) investigation.
The CEO of Binance, CZ, is dissatisfied with the CFTC’s accusations and has expressed a willingness to cooperate with the regulator and conform.
Binance Trading Volume Falls Following CFTC Suit
In recent years, Binance’s derivatives trading volume peaked during US hours (13:30-20:00 UTC) compared to other hours. Since the CFTC litigation, however, derivatives trading volume during US hours has decreased.
The BTC-USDT pair experienced a 90% decline in trading volume after Binance terminated zero-fee Bitcoin trading for all trading pairs except TrueUSD (TUSD).
