• The U.S. SEC and Binance.US recently reached a consent order agreement to secure customer deposits.
• Experts have expressed differing opinions on whether the agreement favors Binance or not.
• The consent order gives regulators significant oversight, which could lead to fresh charges against Binance.
Consent Order Agreement Between Binance and US SEC
SEC Enforcement Action
The United States Securities and Exchange Commission (SEC) has moved to freeze assets belonging to its U.S. affiliate Binance.US due to their alleged commingling and mishandling of customer funds, raising concerns about the safety of U.S customer deposits. In a June 13 hearing, Judge Amy Berman Jackson urged both parties to reach a compromise that would avoid a full asset freeze that would force the business to shut down.
Court Approved Compromise
Over the weekend, the judge approved the compromise reached by both parties, but experts are divided on whether the outcome is in Binance’s favor with some believing it is a victory for the exchange while others consider it too close to an SEC/Judicial receivership for it be seen as such.
Pro-crypto securities lawyer James “MetaLawMan” Murphy argued that the consent order was close to what Binance offered right from start as it was a consent decree rather than Temporary Restraining Order which implies that evidence provided by SEC was not sufficient enough for JudgeJackson’s opinion on merits of case in question . On contrary Former SEC Office of Internet Enforcement Chief John Reed Stark believes this implied significant oversight given to regulators which could lead into fresh charges against Binance in future .
The implications of this agreement remain uncertain as experts hold different views on who this agreement favors -whetherBinance or not-. While some argue that this is a win forBinace and avoids shutting down business , others believe that approval of such agreement implicates significant oversight leading up potential fresh charges againstBinace in future .
The recent court approved compromise between SEC and Binace regarding security of customer deposits has sparked contrasting opinions amongst legal experts as they disagree about implications off this agreement . Its effects remain uncertain however many speculate potential repercussions including additional charges against Binace in near future .