Binance.US and the Securities and Exchange Commission (SEC) of the United States have agreed to collaborate on a plan that will enable the exchange to avoid having all of its assets frozen.
In order to reach a compromise agreement that can protect consumer assets without having to shut down the exchange, U.S. District Judge Amy Berman Jackson reportedly referred the two organizations to a magistrate judge on June 14, according to Reuters.
Jackson stated at a hearing on June 13 that a total shutdown would have substantial effects on the corporation as well as the digital asset markets as a whole.
Judge Jackson observed that until the two parties had resolved the issue with the magistrate, she would not make a final determination about the SEC’s motion for a temporary restraining order.
At the conclusion of business on June 15, there will be an update on the negotiations with the magistrate.
She also mentioned Binance.US and the SEC appeared “not that far apart” in the need to resolve the issue.
Former SEC enforcement lawyer John Read Stark tweeted to his 20,000 followers that there was “a lot of conflict between what each party” wanted to get out of the session before Judge Jackson made her judgement.
That does not imply that the judge cannot mandate a compromise and establish a middle ground, according to Stark.
After charging Binance CEO Changpeng Zhao (CZ) with having access to customer assets on Binance.US, the SEC filed an emergency application for a temporary restraining order on June 6.
According to the regulator, Zhao allegedly transferred $12 billion from Binance through a company he owned called Merit Peak.
Binance.US and Zhao both responded to the restraining order hearing on June 12 with a joint memorandum disputing the allegations that any money was ever handled improperly. They claimed that the SEC was never able to pinpoint a single case in which customer funds on Binance.US were misappropriated.
In fact, except from the one the SEC created for its own reasons, there is absolutely no “emergency” in this situation.
