Late Friday, the thrilling news broke that Binance, Binance.US and the Securities and Exchange Commission (SEC) have announced a deal ensuring only Binance.US employees could access customer funds. This proposed agreement still awaits a federal judge’s approval and is in response to the SEC’s motion to freeze all Binance.US assets. This motion raised concerns for the regulator, fearing that funds could be moved offshore or records destroyed if not granted a temporary restraining order (TRO).
However, Binance.US’s legal team countered that freezing all of its assets would equate to the “death penalty.” Judge Amy Berman Jackson from the District Court for the District of Columbia encouraged the parties to agree on a proposed stipulation rather than have her draft a restraining order. She highlighted that a TRO carries a two-week limit for a more in-depth hearing – insufficient time for preparation, considering the more than 4,000 pages of evidence the parties have already filed.
The proposed agreement requires Binance.US to take measures ensuring no Binance Holdings officials (referring to the global exchange) have access to private keys of its various wallets, hardware wallets, or root access to Binance.US’s Amazon Web Services tools. Furthermore, the U.S.-based crypto trading platform must share detailed information about its business expenses, including estimated costs, in the coming weeks.
Other provisions in the proposed agreement include the creation of new crypto wallets by Binance.US, inaccessible to the global exchange’s employees. Binance.US must also provide additional information to the SEC and agree to an expedited discovery schedule.
It is worth noting that U.S.-based customers will still be allowed to withdraw funds during this time. While this agreement might ensure better safety for customer funds, one can’t help but feel a hint of skepticism about the proposed deal’s impact on the market.
This news comes amidst an ongoing debate among crypto enthusiasts who argue the pros and cons of regulations and their implications on blockchain technology. Some view this agreement as a necessary step towards transparency and security in the growing crypto market. On the other hand, others claim regulation may hinder innovation and privacy.
In conclusion, the proposed agreement between Binance, Binance.US, and the SEC is a gripping development in the crypto world, shedding light on the ongoing conversation around regulations and their overall impact on blockchain technology and the market. It’s a delicate balance between ensuring the future of the market and preserving the innovative spirit that defines the blockchain landscape.
Source: Coindesk
