- The joint motion has most investors wondering if it is a stalemate between the plaintiff, SEC, and defendant, Binance.
- Binance US has been charged by the DoJ, the SEC, and the CFTC for allegedly operating an illegal exchange and executing money laundering.
Binance Holding Ltd., Bam Trading Services, and Changpeng Zhao (CZ) through their lawyers have filed a motion in response to the request by the United States Securities and Exchange Commission (SEC), the plaintiff, to have some documents protected through the court. Notably, the joint motion will ensure that certain confidential information, for instance, that which could essentially hurt a company’s financial reputation, is protected throughout the litigation process.
In June this year, the United States Securities and Exchange Commission charged Binance together with the CEO CZ for violating securities law. Notably, the SEC filed 13 charges against Binance including listing unregistered offers and sale of securities.
Late last month, the SEC filed a sealed motion for leave to file documents under seal, which left most investors speculating what is there to be hidden. Moreover, the SEC often does its motions in public in a bid to send a message to other securities law defaulters.
What Next After Binance and SEC Seems to Be on the Same Page
Binance is already under the radar of several agencies including the DoJ that filed criminal charges against the exchange for allegedly aiding in money laundering. Some experts believe the United States government could be looking to take control of some of Binance US products under a settlement plan. However, Binance does not want to go down that road.
Under the recent joint motion, Binance seems determined to win the case even though it takes working together with the agency. Moreover, the crypto exchange understands the United States does not have the upper hand when it comes to the crypto industry, which taps into Bitcoin and its decentralized nature.
Arguably, the joint motion for a protective order could entail security keys, and user information that could jeopardize the same investor that the agency is allegedly protecting.
“Documents and other information to be produced in connection with this litigation may contain confidential or other nonpublic information as specified in the proposed protective order. The Parties have agreed to a proposed protective order that limits how such information, as well as how other similarly sensitive information, will be protected and disclosed during the course of this litigation,” the joint motion noted.
Market Implications
The United States Securities and Exchange Commission wants Binance coin (BNB), which is a major success story for the BSC ecosystem, to be listed as a security due to the heavy centralization by Binance. Nonetheless, the Binance ecosystem has highly decentralized projects that involve secondary traders without investment contracts, thus not violating any securities laws. Ultimately, the decision by the court on the SEC vs. Binance case will have a notable impact on the BNB price which has been trapped in a correction phase since late 2021.
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