• The US SEC recently reached an agreement with Binance US to secure customer deposits.
• Experts disagree on whether the agreement is favorable to Binance or not.
• The consent order requires Binance.US to comply with a range of oversight requirements including audits and reports, as well as restrictions on how funds are handled.
The U.S. Securities and Exchange Commission (SEC) recently moved to freeze assets belonging to its U.S.-based affiliate, Binance US, due to alleged mishandling of customer funds. In a June 13 hearing, Judge Amy Berman Jackson urged both parties to reach a compromise in order to avoid a full asset freeze that could force the business into shutdown mode. Over the weekend, this proposed compromise was approved by the judge – but experts disagree on who it favors most: Binance or the SEC?
Experts Weigh In
Pro-crypto securities lawyer James “MetaLawMan” Murphy believes that the consent order is close enough to what Binance offered at the outset and should be seen as a win for the company since it implies that there is not yet enough evidence for a successful case against them on its merits. However, Former SEC Office of Internet Enforcement Chief John Reed Stark argued that giving regulators significant oversight over Binance could lead to fresh charges against them – so he sees it as far from being any kind of victory for the exchange itself.
What Does The Consent Order Require?
As part of the consent order approved by Judge Jackson, Biance US must comply with certain requirements aimed at protecting customer funds including regular internal audits and reports; maintaining books and records; ensuring compliance with anti-money laundering rules; implementing appropriate controls; and restricting how funds are handled in order to ensure their safety at all times.
It appears that only time will tell who ultimately benefits from this agreement between Biance US and the SEC – however, customers can rest assured knowing that measures have been taken in place in an effort to protect their deposits going forward.