Binance.US and SEC Told to Collaborate by Federal Judge
A federal judge has urged Binance.US and the Securities and Exchange Commission (SEC) to work together rather than ruling on the regulator’s requests to investigate the exchange’s technology setup and obtain more documents. Judge Zia Faruqu stated, “I’m not going to order from the bench right now that they produce or not produce things. Let’s continue to try to work this out.” The SEC had asked the judge to force Binance.US to share additional documents related to its investigation and allow an inspection of its software and technical infrastructure.
SEC Accuses Binance.US of Non-Cooperation
The SEC has accused Binance.US of failing to cooperate by providing limited documents during the discovery process. The regulator received unintelligible screenshots lacking essential details. In response, Binance described the SEC’s requests as “unduly burdensome.” The SEC is particularly concerned about the custody of customer assets and wants a comprehensive investigation into potential connections between Binance.US and its global affiliate, Binance Holdings Limited.
Deadline Set for Joint Status Report
Judge Faruqui has set a deadline of October 10 for a joint status report and scheduled a follow-up hearing for October 12. This legal battle between the SEC and Binance began when the regulator filed a lawsuit against the crypto exchange in June for allegedly offering unregistered securities.
Hot Take: Binance.US and SEC Urged to Find Common Ground
A federal judge has advised Binance.US and the SEC to collaborate instead of immediately ruling on the regulator’s requests. The judge’s encouragement for both parties to work together indicates a desire for an amicable resolution. The SEC accuses Binance.US of non-cooperation due to limited document production and unintelligible screenshots. Binance argues that the SEC’s requests are burdensome. The custody of customer assets is a major concern for the SEC, which seeks to investigate potential connections between Binance.US and its global affiliate. The judge has set a deadline for a joint status report, highlighting the importance of progress in this legal battle.
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