In a recent development, Binance.US and the Securities and Exchange Commission (SEC) have reportedly reached a temporary agreement that restricts access to customer funds solely to Binance.US employees. The proposed agreement, which still awaits approval from the overseeing federal judge, includes measures to prevent Binance Holdings officials from accessing private keys of wallets, hardware wallets, or root access to Binance.US’s Amazon Web Services tools. Additionally, Binance.US will provide comprehensive information on its business expenses, including estimated costs, in the coming weeks.
This agreement surfaced as a direct response to a motion filed by the SEC to freeze all of Binance.US’s assets during the ongoing legal proceedings related to securities-related charges. The SEC expressed concerns that without a granted Temporary Restraining Order (TRO), there might be a risk of funds being transferred offshore or critical records being deliberately destroyed. However, Binance.US’s legal representatives argued that imposing a total freeze on assets would essentially administer an excessively punitive “death penalty” to the company.
Earlier this week, Judge Amy Berman Jackson advised both parties that it would be more beneficial for them to reach an agreement on a proposed stipulation rather than relying on her to formulate a restraining order. The judge pointed out that a temporary restraining order carries a limited duration of two weeks, which might prove insufficient for a comprehensive and thorough hearing, especially considering the significant volume of exhibits already submitted.
The proposed agreement also includes provisions like the creation of new crypto wallets by Binance.US, which will be inaccessible to employees of the global exchange. Binance.US will also provide additional information to the SEC and agree to an accelerated discovery schedule. Notably, customers based in the United States will retain the ability to withdraw funds throughout this period.
If accepted, the agreement will partially address the SEC’s concerns while the broader lawsuit continues. The SEC recently sued Binance and Binance.US for trading unregistered securities and alleged commingling of funds and poor practices. However, the proposed agreement does not encompass the broader lawsuit.
In conclusion, the temporary agreement between the SEC and Binance.US could potentially serve as a middle ground, allowing for the protection of both customers’ funds and the SEC’s regulatory concerns. The outcome of this agreement could set a precedent for future dealings between the crypto industry and regulatory bodies. However, it’s essential to observe how this development affects the broader lawsuit and the long-term implications for both parties involved.
Source: Cointelegraph
