Binance’s case against the Commodity Futures Trading Commission (CFTC) has just started and will surely last for a long time, just like the SEC’s case against Ripple. Both cases are highly relevant not only for the accused crypto companies, but for the entire crypto industry, as their outcomes may shape future regulation on services applied to cryptocurrencies.

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The United States derivatives regulator reprimanded Binance Holdings Ltd for non-compliance with US regulations for these financial products. The accusation was formalized three weeks ago and was directed both at Binance as well as in a personal capacity against its founder and CEO, Changpeng Zhao.

On Thursday, Behnam said the operator of the world’s largest cryptocurrency exchange had intentionally flouted CFTC rules. If you are going to offer futures contracts in the US, it is clear that you must be registered with the CFTC and comply with the law, he added.

CFTC Chairman Rostin Behnam made a statement at an event hosted by Princeton University where he took direct aim at the world’s largest cryptocurrency exchange in terms of volume traded:

These are not unsophisticated individuals…they are creating large companies and offering futures and derivatives contracts to US clients.

The CFTC accuses Binance of offering unlicensed cryptocurrency derivatives. Binance has a specific affiliate for the United States, Binance.US, which would serve to separate domestic clients from its international affiliate. Binance.US makes it easy to enforce US regulation on its US clients.

However, the CFTC has accused Binance of using “creative” strategies to allow US clients to access services offered by its international subsidiary, thereby circumventing the rules applied by US regulators. Behnam accused Binance of knowingly breaking CFTC rules, adding:

If you are going to offer futures contracts in the United States, it is clear that you must be registered with the CFTC and comply with the law.