Crypto News: Yet another major regulatory enforcement action came for the crypto market on Monday with the U.S. Commodity Futures Trading Commission’s (CFTC) lawsuit against crypto exchange Binance. The lawsuit named the exchange’s Chief Executive Officer, Changpeng “CZ” Zhao over violation of trading and derivatives related regulations. This news came as a setback for traders as Bitcoin price fell below the $27,000 milestone in reaction to the lawsuit. Reacting to this, CZ tweeted referring to an interesting caveat he spoke about before.
Also Read: U.S. CFTC Sues Binance And CEO CZ For Violating Regulations; BNB Price Set To Crash?
CZ Tweets ‘4’ – What It Means
The Binance CEO tweeted the digit ‘4’ immediately after news broke of the CFTC lawsuit against the crypto exchange. CZ has been known to be a highly optimistic and popular voice in the crypto ecosystem. The top exchange had in recent times attracted scrutiny about lack of clarity about its asset reserves. However, it stood out to be the top exchange in terms of trading volume.
— CZ 🔶 Binance (@cz_binance) March 27, 2023
In his own words, CZ recently said digit ‘4’ means “Ignore FUD, fake news, attacks, etc.” This comment came in the form of a warning in early January 2023. Hence, the tweet on ‘4’ suggests at ignoring FUD around the latest regulatory attack. In the lawsuit, the CFTC accused the CEO, among others, of failing to properly supervise Binance’s activities.
Also Read: Polygon Unveils Its Layer-2 zkEVM Network; Is MATIC Price Poised To Rally?
Securities Vs Commodities
Meanwhile, Paul Grewal, Chief Legal Officer at Coinbase, wondered about the state of US laws on how crypto assets are categorized.
“If you’re confused, you are not alone. Is this really the best American law has to offer?”
He said so in context of the CFTC lawsuit claiming Bitcoin, Ethereum and Litecoin to be commodities. This is contrast to the U.S. Securities and Exchange Commission’s (SEC) stance. In fact, the SEC issued an alert last week asking investors to exercise caution with crypto asset securities. Earlier in March 2023, SEC chair Gary Gensler faced criticism for saying all cryptocurrencies except Bitcoin are securities.
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