Binance’s founder, Changpeng Zhao (CZ), expressed approval regarding the deal with the U.S. securities regulator, which averted a potential freeze of the exchange’s assets within the U.S. The cryptocurrency firm’s American arm echoed this sentiment, expressing relief that the SEC’s plea for a provisional restraining order did not receive court approval.
SEC Agreement Enables Binance US to Maintain Operations, States Exchange
Changpeng Zhao, the CEO and founder of the world’s leading digital asset exchange, utilized Twitter on Saturday to share the positive result of the latest engagement with the U.S. Securities and Exchange Commission (SEC). Additionally, CZ reassured clients that their investments remain safe across all Binance-affiliated platforms.
Zhao’s remarks followed an agreement between him, the entities running Binance’s U.S. platform, and the SEC to transfer assets held on behalf of U.S. clients back to the United States, as per a court directive obtained by the regulator. The emergency relief ensures that American users can withdraw funds from the platform while their remaining assets held on the exchange stay within the country.
Previously, the SEC requested a temporary restraining order (TRO) on Binance US’s assets for the duration of its lawsuit against the exchange’s operators, BAM Trading Services, BAM Management US Holdings, and CZ. The SEC accused them of infringing U.S. securities laws, as well as mismanaging and misdirecting client funds.
In another tweet, Binance US reassured its users that the United States District Court for the District of Columbia did not grant the SEC’s TRO and asset freeze request on the platform, describing it as “patently unjustified by the evidence and the law.”
“Rather, we succeeded in negotiating a Court-sanctioned agreement with the SEC that permits us to proceed with our standard business operations. The SEC has yet to produce any proof of customer asset misuse,” stated the exchange.
Binance US highlighted that the SEC’s request “would have effectively closed our operations, aligning with the regulator’s ongoing attempts to undermine the crypto industry by any means.” The branch acknowledged that its conflict with the SEC had impacted its business, but not its determination to stand against “undeserved allegations and ‘regulation by enforcement’ strategies.”
Do you believe Binance will ultimately triumph in its legal confrontation with the U.S. Securities and Exchange Commission? We invite you to share your perspectives on this case in the comments section below.
Frequently Asked Questions (FAQs) about Binance SEC Agreement
What is the agreement between Binance and the U.S. securities regulator about?
The agreement is about averting the freezing of Binance’s assets in the U.S. The regulator’s request for a temporary restraining order was not granted by the court, which allowed Binance to continue its regular business operations.
What was the outcome of the U.S. Securities and Exchange Commission’s (SEC) request for a temporary restraining order (TRO)?
The U.S. District Court for the District of Columbia did not grant the SEC’s request for a TRO and freeze of assets on the Binance platform. Binance stated that this request was “clearly unjustified by both the facts and the law.”
Why did the SEC sue Binance’s operators and founder?
The SEC accused Binance’s operators (BAM Trading Services and BAM Management US Holdings) and its founder Changpeng Zhao (CZ) of violating U.S. securities laws and mismanaging and misdirecting customer funds.
How did the agreement impact Binance’s operations?
The agreement with the SEC allowed Binance to continue its operations as usual. This was possible due to a court-sanctioned agreement, which meant that U.S. users could continue to withdraw funds while their remaining assets remained in the country.
What are Binance’s views on the SEC’s attempts to regulate the crypto industry?
Binance US views the SEC’s requests and lawsuits as continuous attempts to undermine the crypto industry. Despite the legal challenges and business impact, Binance remains determined to defend against what it calls “unwarranted charges and ‘regulation by enforcement’ tactics.”
More about Binance SEC Agreement
- Binance Official Site
- U.S. Securities and Exchange Commission (SEC) Official Site
- News on Binance’s legal issues
- Understanding Cryptocurrency Regulation
- Overview of the Crypto Industry