SEC and Binance.US Ordered by Judge to Negotiate a Deal
- The United States SEC and crypto exchange Binance.US have been ordered to negotiate a deal.
- US District Judge Amy Jackson has referred the two to a magistrate judge to figure out a deal to protect customers’ funds.
- Jackson said that the two are “not that far apart” when it comes to reaching an agreement on the matter.
- BAM Trading requested a consent order to ease some of the restrictions imposed by SEC via its motion against Binance.US.
The United States Securities and Exchange Commission (SEC) and the US arm of the world’s largest crypto exchange, Binance.US, have been ordered by US District Judge Amy Berman Jackson to work out a deal to avoid the freezing of assets belonging to Binance.US. The two have been referred to a magistrate judge to negotiate a deal.
As per a report from Bloomberg on June 14, the judge has ordered the SEC and Binance.US to work out a deal and protect the funds belonging to the customers of the exchange without shutting down the operations of the firm completely. In a June 13 hearing, Jackson said that “shutting it down completely would create significant consequences not only for the company but for the digital asset markets in general.”
Moreover, the judge also added that she will not come to a final conclusion on the SEC’s motion for a temporary restraining order against Binance.US until the two entities have negotiated a deal under the magistrate. Jackson noted that the US agency and the crypto exchange seemed “not that far apart” when it came to reaching an agreement on the matter.
Before the hearing was concluded on June 13, former SEC enforcement attorney John Read Stark stated via his official Twitter account that there was “a lot of conflict between what each party” wanted to get out of the hearing. Stark explained that this “does not mean the judge cannot order a compromise and find common ground.”
On the other hand, the parent company of Binance.US, BAM Trading, requested a consent order to ease some of the restrictions from the regulator’s motion to freeze the assets belonging to the crypto exchange. The document read the following:
“BAM Trading and BAM Management may continue to make payments for the purchase of goods and services, salaries for BAM Trading and BAM Management personnel, including pre-existing benefits, professional fees, and other similar ordinary-course expenditures for the operation of their businesses.”
As reported earlier by Bitnation, Binance CEO Changpeng Zhao, also known as CZ in the crypto space, has been issued a summons by the District Court for Washington, D.C. Additionally, Zhao reportedly has 21 days to respond to the order.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
