- Binance presented a five-point argument against the CFTC lawsuit.
- BNB had been seeing a negative funding rate until recently.
In March, a significant legal battle unfolded when the Commodity Futures Trading Commission (CFTC) launched a lawsuit against Binance.
The allegation leveled against them was the offering of unregistered securities. An intriguing twist, however, emerged as recent court filings revealed that Binance fiercely contested the charges.
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Binance gives 5 point defense
Following months of the CFTC’s initiation of a lawsuit against Binance, the world’s biggest cryptocurrency exchange, finally responded. This was revealed in a recent court document. In its response, Binance presented five key arguments.
The first argument was centered around the “Lack of Personal Jurisdiction.” Binance firmly contends that the CFTC’s complaint should be dismissed, as it fails to demonstrate that the foreign entities of Binance and its CEO are subject to the personal jurisdiction of the United States.
The exchange asserted that the complaint relies on group pleading and neglects to individually assess each defendant’s connections with the U.S.
The second argument revolved around the concept of “extraterritoriality,” where Binance accused the CFTC of exceeding its legal boundaries. According to Binance, the CFTC did not provide any allegations that the defendants engaged in domestic transactions.
Moreover, the exchange argued that several counts in the complaint were flawed since the CFTC could not establish Binance.com as a domestic board of trade or prove that any defendants operated as a foreign board of trade.
The third point made by Binance emphasized that the CFTC had no regulatory authority over spot trading, neither in the United States nor abroad. As a result, the exchange asserted that the CFTC’s complaint could not stand on this basis.
Finally, Binance argued that the CFTC’s “willful evasion” claim of the Commodity Exchange Act (CEA) and its regulations should be outrightly dismissed. The exchange firmly rejected the notion that it intentionally evaded any provisions of the CEA.
BNB sees an uptrend as the funding rate turns positive
At the beginning of June, the daily timeframe chart of Binance Coin [BNB] indicated a significant decline. Since then, only two instances of a slight 5% increase have occurred. On 27 July, it closed with a gain of 0.67%, reaching a trading value of $240.
As of this writing, the price was around $242, with a minor increase of less than 1%. The Relative Strength Index (RSI) had not shown a clear upward trend yet. Furthermore, its Moving Average Convergence Divergence (MACD) suggested a weak bullish sentiment.
Source: TradingView
– How much are 1,10,100 BNBs worth today
Interestingly, the funding rate on Coinglass remained negative for most of July. This indicated that traders were betting on a price drop, likely due to the legal challenges faced by Binance.
However, positive funding rates have emerged more recently, suggesting that the price may gradually stabilize. It’s uncertain whether this recent development will spark a significant recovery for the token, but observing the upcoming weeks will provide a clearer perspective.