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BinanceUS Seeks Major Order From Court After Partial Victory Against SEC – Crypto News

Published

2 years ago

July 19, 2024

Dripp

Binance’s US-based crypto exchange BinanceUS has requested the court for a major order to grant the exchange relief from last year’s consent order by Judge Jackson. Also, the U.S. SEC has agreed to not oppose the relief sought by Binance.US to comply with the consent order. If given the green light, it will mark another win for the exchange and the crypto industry.

BinanceUS Files For Relief From Consent Order

In the latest court filing with the district court, defendants BAM Trading Services and BAM Management US Holdings (Binance.US) filed a motion for relief from last year’s consent order. The move comes after Judge Amy Jackson denied the BAM defendants’ motion to dismiss the complaint last month.

Binance.US has now used inherent authority and Section IX of the Consent Order to make this request. Under Section IX, the judge ordered that stipulating parties have the right to seek additional relief, or relief from the consent order itself, as available under the Federal Rules of Civil Procedure and applicable law.

BAM is seeking authorization from the court for:

Invest its corporate assets in the ordinary course of its business;
Invest a limited subset of customer assets as defined in the order, and in the US Treasury bills; and
Transfer crypto assets to non-affiliated third-party custodians as weighed by the consent order.

In addition, BinanceUS has also conferred with SEC counsel regarding the relief. While the SEC disagrees with the crypto exchange’s assessment as to whether the relief sought implicates the consent order, it has agreed to not oppose the relief requested.

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Binance Verdict Provided Major Clarity

Defendants Binance Holdings and former CEO Changpeng Zhao also do not oppose this motion by BinanceUS. The consent order mandated Binance.US to separate its system, crypto assets, and team from the larger crypto exchange Binance.

Recently, Binance achieved a landmark partial victory against the SEC. While most motions moved forward for trial, the win on motions regarding crypto secondary sales and sales of stablecoin provided much-needed clarity. Judge Jackson ruled that secondary sales of BNB and sales of BUSD were not securities. The crypto community said the SEC and Chair Gary Gensler ruined Binance and Paxos’ BUSD stablecoin business.

Moreover, the judge agreed with the SEC’s claim against Binance BNB Vault but dismissed the claim related to Simple Earn.

The judge ordered the parties to file a joint submission by July 29 for further proceedings. Binance and SEC are also required to set deadlines for any motion to amend the complaint or for relief from the recent decision on a motion to dismiss.

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