• The U.S. SEC recently reached an agreement with Binance.US on how to secure customer deposits, which was approved by a judge over the weekend.
• Experts are divided in their opinion of who the agreement favors, with some seeing it as a victory for Binance and others viewing it as a setback for the exchange.
• The consent order gives regulators significant oversight, raising concerns that fresh charges may be brought against Binance.
Background: US SEC’s Enforcement Action Against Binance
The United States Securities and Exchange Commission (SEC) recently took sweeping enforcement action against Binance, the world’s largest crypto exchange. The SEC alleged that Binance was in the habit of commingling and mishandling customer funds, raising concerns about the safety of U.S. customer deposits. In response to this action, Judge Amy Berman Jackson urged both parties to reach a compromise during a June 13 hearing, agreeing with Binance lawyers that freezing all assets could force the business to shut down.
The Agreement Reached Between US SEC & Biance
Over the weekend, Judge Jackson approved the compromise reached by both parties as part of her enforcement action against Binance; however experts have voiced differing opinions on who this agreement favors more – some view it as a win for Binance while others see it as a setback for them. As part of this agreement, regulators will have significant oversight which raises concern that they may bring fresh charges against Binance in future.
Experts‘ Views on Who This Agreement Favors More
Pro-crypto lawyer James “MetaLawMan” Murphy has asserted that this so called consent order is close to what was originally offered byBinance and remarked that because it is labeled as a consent decree rather than Temporary Restraining Order implies that there was not enough evidence provided by the SEC to prove that likelihood of success on its merits case against them yet . Former SEC Office of Internet Enforcement Chief John Reed Stark however expressed his disagreement with Murphy’s view; he argued it is very difficult to argue such an order granting significant oversight amounts to any form of victory for Biance since it falls just short of an receivership imposed by the SEC or judiciary body .
Due to diverging opinions among legal experts concerning whether or not US SEC’s recent agreement with Biance is more favorable towards them ,it remains unclear at this time if there will be any further repercussions from these allegations or if they will eventually emerge unscathed from this ordeal .