Approval has been secured by Binance to invest US customer fiat funds in US T-Bills leading to a surge in BNB price. 😊

Court Grants Relief To Binance BAM Subsidiary

Recently, Binance’s subsidiary in the US, BAM Trading Services, was granted court approval to invest client fiat funds into US Treasury Bills. This decision came after BAM filed a motion seeking relief from a consent order, which was approved by the court. The court’s decision allows BAM to hire third-party investment advisors to manage corporate assets and invest certain customer fiat funds in US Treasury Bills on a rolling four-week basis. However, BAM is prohibited from involving any third parties, including Binance Entities, in these investments.

The court approved BAM’s request to invest client fiat funds into US Treasury Bills.
BAM can hire third-party investment advisors to manage corporate assets.
BAM is prohibited from involving any third parties, including Binance Entities, in these investments.

Compliance Journey Continues

As part of the court’s decision, BAM is now allowed to custody assets with and transfer assets to wallets provided by non-affiliated third-party custodians in the United States. This move is aimed at maintaining control over customer assets, with BAM Trading officers and employees based in the US solely directing and managing wallets’ private and administrative keys. All transfers and withdrawals will require approval from both BAM Trading and the respective third-party custodian to ensure compliance.

BAM can custody assets with non-affiliated third-party custodians in the US.
Offices and employees based in the US will solely direct and manage wallet keys.
All transfers and withdrawals require approval from both BAM Trading and the custodian.

Price Movement and Analysis

Following the court’s decision, Binance Coin (BNB) experienced a price recovery, with its native token rising over 5% to reach $597. This increase comes after a recent drop to $455 on July 5. Over the past two weeks, BNB has seen significant gains, up 12% and 20% in the seven- and fourteen-day time frames, respectively. Despite these gains, the token is still down 17% from its all-time high of $717 set on June 6th.

BNB’s price rose over 5% to $597 following the court approval.
The token has seen gains of 12% and 20% in the seven- and fourteen-day time frames.
BNB is still down 17% from its all-time high of $717.

Embracing the Bullish Momentum

In addition to the price recovery, BNB has surpassed the 200-day exponential moving average (EMA), a key indicator that signals further price appreciation. The yellow line representing the 200-day EMA now sits below the current price on the BNB/USD daily chart, indicating strong support for the token’s price. Moving forward, BNB may encounter resistance at levels such as $610, $633, and $675 if the current price recovery continues.

Hot Take: Concluding Thoughts

As developments continue to unfold in Binance’s regulatory journey in the US, the recent court approval allowing its subsidiary to invest client fiat funds into US Treasury Bills marks a significant step. This decision has not only boosted Binance Coin’s price but also signaled a potential shift in compliance and operational practices within the exchange. With BNB showing signs of recovery and surpassing key indicators, investors are closely monitoring the token’s price movements and market trends.

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