Judge Rejects SEC’s Request to Freeze Binance.US Assets – Judge Amy Berman Jackson, presiding over the U.S. Securities and Exchange Commission’s legal proceedings against Binance and its American counterpart, Binance.US, has made a significant decision. Instead of granting the SEC’s request for a temporary restraining order that would have halted the Binance.US trading platform and frozen its assets, the judge has opted for a different approach.
Judge Jackson has urged the SEC to engage in ongoing discussions and negotiations with Binance.US regarding certain limitations and conditions. This decision implies that the judge recognizes the importance of allowing Binance.US to continue its operations for the time being, while ensuring that appropriate measures are taken to address any concerns raised by the SEC.
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During the legal proceedings between Binance.US and the U.S. Securities and Exchange Commission (SEC), Binance.US strongly advocated for the judge to dismiss the SEC’s request to freeze billions of dollars’ worth of assets on the trading platform. The representatives from Binance.US expressed their refusal to accept the severe consequences of a complete asset freeze, referring to it as a “death penalty.”
Their primary objective was to secure permission for normal operational expenses to ensure the platform’s continued functioning. At the hearing held on Tuesday, Judge Amy Berman Jackson displayed frustration with the responses provided, particularly when she inquired about whether any funds belonging to Binance.US customers had actually been transferred out of the country.
Multiple SEC attorneys expressed their concerns primarily regarding Binance’s global platform, which possesses enough private key shards to facilitate fund transfers. In an effort to find a resolution, the judge emphasized that if the SEC and Binance.US lawyers could reach an agreement on limitations and conditions, there would be no necessity for a restraining order. This approach would provide all parties involved with sufficient time to thoroughly examine the intricacies of the case.
Furthermore, Judge Jackson requested that Binance.US furnish the court with a detailed list of its business expenses. A status update is expected by the end of the business day on Thursday, indicating that the judge is actively monitoring the progress of the negotiations. The exchange between Binance.US, the SEC, and Judge Jackson underscores the gravity of the situation and the differing perspectives on how to address the alleged violations.
Binance.US, motivated to safeguard its operations, seeks a more measured response that allows for normal business expenses. On the other hand, the SEC remains concerned about the potential movement of funds facilitated by Binance’s global platform. The judge’s involvement in the negotiations and her request for transparency regarding business expenses indicate her commitment to overseeing a fair and informed decision.
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The outcome of these discussions will have significant implications not only for Binance.US but also for the broader regulatory landscape of the cryptocurrency industry. It remains to be seen whether the SEC and Binance.US can find common ground and establish limits and conditions that satisfy both parties while upholding regulatory objectives.