Binance Sued by US Watchdog for Alleged Derivatives Rule Lapses - Slashdot

Binance Sued by US Watchdog for Alleged Derivatives Rule Lapses

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• Re:

  The CFTC doesn't regulate financial scams?

  • No, that would be the FTC or CFPB

    The CFTC doesn't regulate financial scams?

    The CFTC, per its name, regulates commodities and futures. These are futures contracts. Calls and puts in the stock market are futures contracts. The CFTC has a clear case here. You can't even write up futures contracts on pet rocks and bottled farts without running afoul of the CFTC if you don't file paperwork with them first.

    Unlike the SEC's bullshit cases, the CFTC actually has a slam dunk case against Binance.

    • Re: No, that would be the FTC or CFPB

      Calls and puts are options.

      Few people trade futures (or options) in crypto, the instruments being targeted here are the perpetual swaps.

• Crypto just looks like a security

  it walks & quacks like one. It's a non-physical item you purchase with the expectation that it may or may not increase in value over time. In any other context that's a security. It's not a commodity because it has no material use outside of the expectation that it will increase in value.
  
  But yeah, Binance and the rest of the exchanges will be leaving the US soon for one of the dodgier countries where they can engage in money laundering & ponzi scams with impunity. Eventually they'll be frozen ou

  • You're not a lawyer, stop playing one

    t walks & quacks like one

    Actual lawyers who practice securities law as their daily career have skewered the Hell out of the SEC on their attempts to apply the Howey Test to it.

    As one of them noted in the twitter thread I provided, the SEC's own in house lawyers never acknowledged this "obvious jurisdiction" until a decade after Bitcoin was released and then couldn't come up with a coherent explanation for why Ripple was a security, but Bitcoin wasn't.

    I know this may come as a shock to a lot of you here,

    • I think I see the problem here

      You misspelled "lobbyists for crypto firms" as "lawyers". It's a common mistake in the crypto community.
      
      Crypto Bros are desperate to be declared a commodity because the cftc has much much weaker regulatory Powers than the SEC.
      
      In that sense this lawsuit is probably just a stealth way to try to clear crypto a commodity but some of their allies at the cftc.
      
      Assuming you're not a crypto scammer you don't want this. It would open the door to a never-ending supply of Ponzi schemes until the whole thing