SEC Triumphs in Crypto Regulation

The recent legal showdown between binance information binance [email protected] Centralised Exchange and the Department of Justice (DOJ) has created quite a stir. While everyone was watching the DOJ, the Securities and Exchange Commission (SEC) quietly set itself up for some surprising gains.

Let’s dive into the details of the newest drama and uncover how the SEC is coming out as an unexpected winner in the shadows.

What Is SEC’s Secret Game?

You might wonder why there were no SEC officials at the DOJ’s big announcement about Binance’s legal issues. According to former SEC official John Reed Stark, this move doesn’t mean the SEC is out of the game. Instead, it puts the SEC in a position to benefit from Binance’s own admissions in the DOJ Plea Agreement and FinCEN Consent Order.

Why The Binance DOJ/FinCEN/CFTC Actions Are a Huge SEC Victory (Even Though the SEC Was AWOL From the Plea Party)
Conspicuously absent from yesterday’s blockbuster press conference announcing the Binance-related settlements, pleas and consent orders with the U.S. Department of… pic.twitter.com/PeZ6rEor5J
— John Reed Stark (@JohnReedStark) November 22, 2023

When Binance agreed to the DOJ’s terms, including a three-year independent compliance monitor, it marked a big change for the exchange. Stark points out that these monitors, probably very detailed, give the SEC a constant flow of evidence. Plus, Binance’s required cooperation with U.S. authorities could reveal more details, making the SEC stronger in the ongoing legal battle.

Also Read: Will Binance Exit the U.S. Market After Hefty $4.3B Settlement? Here Are the Details!

Silence is Golden

Stark emphasizes the big consequences of Binance admitting past mistakes. By doing this, Binance unknowingly sets the stage for more scrutiny from judges. This acknowledgment could make federal judges more likely to support the SEC, turning accusations into established facts and helping the regulator in court.

The SEC chose to stay out of the spotlight during the Binance-DOJ saga, according to Stark, and this might be a clever move. By keeping a low profile, the SEC can strategically use the results of Binance’s settlements with other federal agencies. This could significantly strengthen the SEC’s control over Binance.

Read More: Is Binance on the Verge of Bankruptcy? Crypto Investors Are Panicking!

What do you think of the SEC’s strategy?

Source: https://coinpedia.org/news/former-sec-insider-breaks-down-binance-doj-settlement-as-secs-triumph/