3 - 4 minute read
Binance and Binance.US have responded to the U.S. Securities and Exchange Commission’s (SEC) lawsuit against them. The SEC accused Binance of operating an unregistered securities exchange and failing to register as a broker-dealer. The lawsuit also alleged that Binance.US offered trading of securities without registering as a national securities exchange. The crypto exchanges responded by arguing that the proposed temporary restraining order would prevent them from paying employees and vendors, and that the SEC was seeking unnecessary and unjustified relief. They also previewed their defense against the SEC’s charges.
The stakes appear to be dire for Binance, but by the end of the day, we may get a better sense of how the case is proceeding and what a judge thinks about the arguments so far. District Judge Amy Berman Jackson ordered Binance and Binance.US to describe any differences in their proposed stipulations by 1:00 p.m. ET, an hour before the hearing is set to begin. She also ordered the SEC to describe what changes it wants from the Binance.US proposal that would make it acceptable to the agency “in lieu of the proposed” temporary restraining order.
At the risk of reading too much into the tea leaves, this minute order also suggests how the judge might approach at least the initial issues in the lawsuit. The order suggests that Judge Jackson may not want to sign off on a full temporary restraining order but is willing to enact some sort of restriction on who can access Binance.US’s funds.
The SEC’s allegations against Binance are serious and will get put to their first test in court today. The outcome of the hearing could have significant implications for the future of Binance and the crypto market as a whole. Traders should keep a close eye on the developments and be prepared for potential market moves.
In response to the SEC’s lawsuit, Binance and Binance.US argued that the proposed temporary restraining order would prevent them from paying employees and vendors, and that the SEC was seeking unnecessary and unjustified relief. The crypto exchanges also previewed their defense against the SEC’s charges. Traders should be aware that the outcome of the hearing could have significant implications for the future of Binance and the crypto market as a whole.
The Bottom Line
The SEC’s lawsuit against Binance and Binance.US has significant implications for the future of the crypto exchanges and the broader market. Traders should keep a close eye on the developments and be prepared for potential market moves.
