Bigger Lawsuit – The Binance Lawsuit 🥊

Bigger Lawsuit – The Binance Lawsuit

Cryptocurrencies are already facing an industry-defining lawsuit with the Ripple case we discussed last week. The outcome of that decision could determine whether cryptocurrencies are deemed securities or not, with major regulations hanging in the air. As we await the verdict from a federal judge in New York, another lawsuit has appeared that could arguably be larger.

On Monday, the Commodity Futures Trading Commission filed a lawsuit against Binance, the largest cryptocurrency exchange in the world. That’s right, Binance is larger than Coinbase and is led by visionary and crypto icon Changpeng Zhao, commonly known as CZ. The CFTC accused Binance of violating US trading laws by offering unregistered crypto derivative products like futures and options contracts, and intentionally “coaching” their customers to circumvent compliance controls to trade these instruments. There are many talking points on this lawsuit, the first one being Binance’s regulation evasion per say. The CFTC claims that Binance’s decision to not have a headquarters is simply to avoid regulations as CZ has said numerous times that HQ is simply wherever he is at any time, and that American consumers are still in danger. It is also a heavy subject considering this is normal in the crypto industry, with users utilizing VPNs to trade different crypto products that aren’t allowed in areas like the US without being registered and regulated. The possible effects of this lawsuit are grand, with the CFTC holding the power to prevent Binance from registering a derivatives exchange and their products forever. Analysts estimate that the US makes up for 16 percent of the derivatives revenue, which would be a major loss for the business.

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:

More Posts

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.