On Friday, the Securities and Exchange Commission (SEC) and Binance reached a deal that would enable the world’s largest cryptocurrency exchange to continue trading in the U.S. and protect customer assets. This is in response to the fraud charges the SEC filed against Binance on June 5, as well as the SEC’s attempt to freeze the firm’s U.S. assets.
The agreement must be approved by Judge Amy Berman Jackson, who is handling the case in federal court. It states that Binance.US customers’ funds will be deposited into special digital repositories and not be accessible to the international operation of Binance or to its founder, Changpeng Zhao. Furthermore, the exchange can only use company assets “solely to make payments for expenses or to satisfy obligations incurred in the ordinary course of business.”
The SEC’s Director of Enforcement, Gurbir Grewal, said in a statement on Saturday that the deal ensures that U.S. customers will be able to withdraw their assets from the platform. This case is significant as it may determine the future of the crypto industry in the U.S. as the SEC has been cracking down on crypto companies.
At a court hearing on Tuesday, Judge Jackson expressed her doubts about the SEC’s approach to regulating the crypto world and asked the parties to negotiate a deal on protecting customer assets. She also remarked that Binance’s claim of surprise at the SEC’s aggressiveness was unconvincing, considering that the SEC has been investigating Binance since 2020.
