In a dramatic turn of events, the federal judge overseeing the SEC’s case against Binance and Binance.US has declined to grant a temporary restraining order freezing the assets of the U.S. trading platform. Instead, the judge has encouraged both parties to engage in negotiations and find a mutually agreeable solution.
The Binance defendants have filed their opposition to the SEC's motion for an asset freeze order.
They have proposed a reasonable compromise order that would:
1. secure the assets of all https://t.co/reBq6K7KAs customers;
2. place the private keys in the hands of U.S.…— MetaLawMan (@MetaLawMan) June 12, 2023
Let’s explore the good, bad, and ugly of this new decision
Concerning Lack of Evidence
During the hearing, the judge expressed frustration with the SEC attorneys regarding their motion. She questioned whether any Binance.US customer funds had actually left the United States, seeking clarification on the matter. The judge’s repeated inquiries and the SEC’s inability to provide concrete evidence added to the courtroom tension.
“The Judge was also “frustrated” by the SEC’s inability to answer the simple question of whether U.S. customer assets had been transferred overseas.”
Did Binance Get The Worse Deal?
While not granting a full asset freeze, Judge Jackson indicated her inclination towards imposing certain restrictions on Binance’s access to Binance.US assets. She urged both parties to reconcile their proposed restrictions, directing the SEC to contrast its requirements with the proposals put forth by Binance and Binance.US.
The judge also expressed skepticism about the SEC’s utilization of its enforcement powers to regulate the crypto world. She referred to it as “inefficient and cumbersome,” highlighting her concerns about the agency’s approach.
Binance Proposes A Compromise
In response to the SEC’s motion, the Binance defendants presented a proposed compromise order aimed at safeguarding the assets of Binance.US customers. Their proposal includes securing assets, placing private keys under U.S. personnel control, and providing an accounting of Binance.US assets. However, the SEC has thus far refused to agree to this compromise order.
Will the two giants find common ground or is this battle likely to continue for long? Only time can tell.
Source: https://coinpedia.org/news/sec-vs-binance-judge-denies-restraining-order-calls-for-negotiation/