Ex-SEC Official Says Regulator Is Playing Hardball with Binance

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Alex Dovbnya

Former SEC official John Reed Stark has highlighted the SEC’s aggressive stance and the historical precedence set by its pursuit of such substantial relief from a major financial institution

Former SEC official John Reed Stark has published a fresh series of tweets outlining the ongoing SEC/Binance case, stating the regulator is taking a firm stance against the crypto behemoth.

Stark highlights that the court’s latest order, aiming to mediate a compromise via a temporary consent decree, is a strategic move to allow all parties adequate preparation for a comprehensive hearing.

Stark appreciates the regulator’s audacious and aggressive actions in this case. According to him, the SEC’s primary concern is safeguarding investor funds, and it seeks extraordinary relief such as an asset freeze and the repatriation of billions of dollars.

He stressed that the SEC believes the evidence of fraudulent activity is compelling. Traditionally, such enforcement is directed toward smaller entities or individuals, making the SEC’s move against Binance, a leading financial institution, quite unprecedented.

Stark also detailed the contrasting viewpoints presented in the SEC and Binance’s draft consent orders. Both parties submitted drafts stating what they expect from the judge’s order in the SEC/Binance emergency asset freeze enforcement action. While there’s significant conflict between both parties’ arguments, Stark suggests the judge could broker a compromise, line by line, to find common ground.

The former SEC official underscored the fast-paced and unpredictable nature of the unfolding situation.

This confrontation is shaping up to be perhaps the most critical SEC enforcement action in the crypto domain, which may set significant precedents for the rapidly evolving industry.

Source: https://u.today/ex-sec-official-says-regulator-is-playing-hardball-with-binance