- SEC and Binance referred to mediation on agreement to protect customer funds
- SEC filed an emergency motion for a restraining order against the exchange
The US Securities and Exchange Commission and Binance’s US arm have reached an agreement for the exchange to keep operating and potentially avoid a full asset freeze, Bloomberg wrote.
US District Judge Amy Berman Jackson referred SEC and Binance to another judge to workon an agreement to protect customer funds without the exchange shutting down. At a hearing on June 13, Jackson said that closing the exchange down would have “significant consequences” not only for Binance, but for the crypto market in general.
No move on SEC-requested restraining order
Last week, SECfiledan emergency motion in the District of Columbia for a temporary restraining order against Binance, the US arm, and CEO Changpeng Zhao (CZ), requesting a total of eight actions.The watchdog alleged that CZ had moved Binance assets worth $12 billion through Merit Peak, an entity he controlled.
Judge Jackson said she would make a final decision onthe order when Binance and SEC worked through the situation with the judicial mediator. An update on the negotiations will emerge at the end of the business day tomorrow.
The judge offered hope that SEC and Binance would reach an agreement because their positions were “not that far apart.”
“A lot” of conflict
Not everyone is so optimistic, though. Former SEC attorney John Read Stark tweeted that there was “a lot of conflict” between what Binance and SEC wanted to achieve in the process. Yet, he assured the judge could find an option to compromise based on common ground.
Allegedly, Binance, the US arm, and CZ sold unregistered securities in the form of the stablecoin BUSD and the Binance Coin (BNB) token. SEC accused the exchange that its staking service violated securities laws and that it failed to register as a clearing agency, an exchange, and a broker.
Binance and its CEO vehemently deny the accusations. CZ has said the regulator couldn’t “identify a single instance” in which the US arm mishandled customer funds.
In related news, the Republican Party introduced the “SEC Stabilization Act” in Congress, which has the main provision to remove SEC chair Gary Gensler.
Contributors
