Binance Seeks Lawsuit Dismissal, Bitcoin Hits $35K amid ETF Buzz, and Crypto Bills Await New House Speaker
Summary:
Binance and its CEO Changpeng "CZ" Zhao are looking to dismiss a lawsuit initiated by the U.S. Commodity Futures Trading Commission (CFTC) in March for non-registration. At the same time, Bitcoin price soared over the $35k mark, a first in a year. Key crypto legislation is paused, awaiting the appointment of a new House Speaker. Meanwhile, a proposed iShares spot Bitcoin ETF by BlackRock, listed on the DTCC, may soon be approved by the US SEC.
Binance, a leading cryptocurrency exchange and its CEO, are striving to quash a lawsuit brought against them by the United States Commodity Futures Trading Commission (CFTC), a case that has been underway since March. Concurrently, the world witnessed Bitcoin at the $35,000 value for the first time in over a year. However, prominent cryptocurrency policies remain static as GOP legislators gear up to select a new Speaker for the House.
Binance and CEO Changpeng "CZ" Zhao are proactive in their efforts to terminate the lawsuit lodged by the CFTC. This assertion was reinforced by court submissions on October 23, arguing that the CFTC's case trangresses its jurisdiction, particularly concerning derivatives products. The court entertains the behaviour of the CFTC by allowing the organization control over any global cryptocurrency activity related to a derivative product.
Furthermore, the court submission emphatically registred that the CFTC was not appointed the international regulatory authority over derivatives by the Congress, and therefore the agency's attempt to extend its global jurisdiction contravenes the mandate of the law. This lawsuit was initiated by the CFTC in March with accusations against Binance for not registering with the agency, thus violating its specific derivative trading rules.
Amidst the ETF fever, the cost of Bitcoin soared, hitting $35,000, a landmark not witnessed since May 2022. On October 23, the price jumped over 10%, propelling Bitcoin from $31,000 to beyond $34,000. Less than two hours later, Bitcoin surged to a high of $35,300 according to TradingView data, settling around $34,550.
The Bitcoin price surge is attributed to increasing interest in potential spot ETF approvals and amplified spot trade volumes. The proposed iShares spot Bitcoin ETF by financial institution BlackRock has been registered by the Depository Trust & Clearing Corporation (DTCC), suggesting probable US SEC approval. Bloomberg ETF analyst Eric Balchunas confirmed via an X (previously Twitter) thread on October 23, that this registration is part of the procedure for launching a crypto ETF.
However, in the backdrop of these events, critical crypto bills in the U.S. are in a legislative deadlock due to a currently vacant House Speaker position. Without a Speaker, crypto-savvy bills crafted by the Financial Services Committee languish without forward momentum. Some of them include the Financial Innovation and Technology for the 21st Century Act, Blockchain Regulatory Certainty Act, and the Clarity for Payment Stablecoins Act.
The election of a Speaker, with some pro-crypto candidates in the race is hopeful for the crypto bills, yet it remains a challenge. The candidates' opposing sentiment of legislatively curtailing illicit crypto activities reflects in a letter backed by Senator Elizabeth Warren and over 100 other representatives. Ensure to carry out individual research before any investment or trading decisions, as each carries potential risk.
Published At
10/24/2023 5:50:29 PM
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