In a recent development in the ongoing legal battle between the federal court rejects SEC’s request to freeze Binance’s assets. However, the court has approved an agreement that will expedite the case, bringing it closer to a resolution. Judge Amy Jackson granted approval to the agreement while dismissing the SEC’s plea for a temporary restraining order to freeze Binance’s assets. According to court filings on June 16, the U.S. Securities and Exchange Commission (SEC) and Binance have entered into a groundbreaking agreement to fast-track the case and safeguard the assets of U.S. customers within the country.
Unprecedented Agreement to Expedite Case and Protect U.S. Customer Assets
Judge Amy Jackson gave her approval to the agreement, but court rejects SEC’s request to freeze Binance’s assets through a temporary restraining order (TRO).
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“Given that Changpeng Zhao and Binance have control of the platforms’ customers’ assets and have been able to commingle customer assets or divert customer assets as they please, as we have alleged, these prohibitions are essential to protecting investor assets.”
Both Binance.US and CZ have refuted all accusations, asserting that the SEC is employing aggressive tactics in an attempt to stifle the cryptocurrency industry.
In response to the approval of the agreement, Binance.US issued a statement stating: “There has never been any evidence presented by the SEC concerning mis-use of customer assets. In fact, the SEC lawyers conceded in Court earlier this week, when asked by the Judge, that they had no evidence suggesting that any such thing had occurred.”
Suggested Stipulation and Consent Order
The agreement, referred to as the “Proposed Stipulation and Consent Order,” enables Binance.US to maintain its regular operations despite the ongoing legal proceedings.
“We ensured that U.S. customers will be able to withdraw their assets from the platform while we work to resolve the alleged underlying misconduct.”
Binance.US will assume the exclusive responsibility for overseeing the funds and has been assigned the responsibility of preventing Binance Holdings officials from accessing its wallets, private keys, and Amazon Web Services tools.
According to the agreement, Binance.US is obligated to transfer all customer funds to newly created wallets accessible solely by its employees. Additionally, Binance.US is permitted to utilize only the necessary amount of funds for essential daily operations.
Accelerated fact-finding process
There has been widespread speculation within the crypto community that the legal cases involving the SEC and Coinbase as well as Binance would extend over several months or even years. As a result, many industry participants have contemplated shifting their growth strategies away from the United States.
However, the consent order aims to expedite the proceedings in Binance’s case against the SEC by requiring all defendants to promptly provide requested evidence and sworn testimonies to the SEC. This accelerated process significantly reduces the time needed to reach a resolution.
Moreover, the order mandates Binance.US to furnish a “verified written accounting” of all accounts and transfers conducted between December 31, 2022, and the specified date of accounting. Judge Jackson, presiding over the Binance-SEC case, will additionally issue preliminary rulings to determine the legal classification of specific cryptocurrencies as securities within the context of the litigation.
Among the tokens mentioned in the SEC’s cases against tokens are Cardano, Solana, Polygon, and BNB, among others, which the SEC has identified as securities. The preliminary rulings concerning these tokens are anticipated to have significant implications for the wider crypto industry in the United States.
In conclusion, the recent developments in the legal battle between Binance.US and the SEC showcase the Court rejects SEC’s request to freeze Binance’s assets while approving an agreement to expedite the case. The outcome of this case will have broader implications for the crypto industry and its regulatory landscape.
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