• The SEC recently reached an agreement with Binance.US on how to secure customer deposits, which was approved by Judge Amy Berman Jackson.
• Experts have expressed different opinions on who the agreement favors, with some viewing it as a win for Binance and others claiming it gives regulators significant oversight.
• The order requires Binance.US to maintain full control over its customers’ assets and to provide regularly updated reports to the SEC.
SEC-Binance US Reach Agreement
The United States Securities and Exchange Commission (SEC) and crypto exchange giant Binance’s U.S. affiliate Binance.US recently reached an agreement on how to better secure customer deposits after a June 13 hearing in court with Judge Amy Berman Jackson urging both parties to reach a compromise, which was later approved over the weekend by the judge.
Experts Disagree on Implications
Experts have different views on who the agreement favors, with pro-crypto securities lawyer James “MetaLawMan” Murphy asserting that it was a win for Binance due to it being close to what they initially offered while Former SEC Office of Internet Enforcement Chief John Reed Stark argued that it gave regulators significant oversight, which could lead to fresh charges against Binance.
Consent Order Details
The consent order requires Binance.US to maintain full control over its customers’ assets and submit regularly updated reports of its operations and activities related thereto for review by the SEC or its designee(s). It also places restrictions on how funds held in customer accounts can be used or transferred without prior notice or approval from either party involved in this dispute. Additionally, all transfers must be made under terms consistent with applicable law and regulations; any transfer exceeding $5 million must receive prior written approval from both parties before being executed; such approvals may be refused at any time; and all records relating thereto must be preserved for 7 years from the date of transfer or disposition of funds held in customer accounts at Binance US .
Suspension of Certain Services
The order further restricts certain services provided by Binance US such as margin trading, futures trading/ contracts trading services until further notice is given from either party involved in this dispute while allowing other services such as spot trading; lending/ borrowing services; stablecoin issuance/ management services; asset custody/ storage services; digital asset trade execution services; KYC/AML compliance related activities; digital asset wallet management applications etc.,to continue uninterruptedly without any restrictions whatsoever until otherwise notified by either party involved in this dispute .
Overall, while experts disagree on who this agreement favors, there is no doubt that it gives more power than ever before when it comes protecting user deposits within U.S.-based exchanges like Binance US .