In the ongoing legal battle between Binance.us and the US Securities and Exchange Commission (SEC), the judge has agreed with the joint stipulation filed by both parties. This decision comes after Binance.us sought a protective order, while the SEC filed a sealed motion for leave to file documents under seal.
Filing under seal allows sensitive or confidential information to be kept away from the public record. In response to this development, Magistrate Judge Zia M. Faruqui has signed the joint stipulation agreed upon by both parties. The stipulation refers to a formal agreement between opposing parties before a court hearing or trial. In this case, both the SEC and Binance have agreed that the defendant will submit a single filing in the best interest of efficiency and judicial economy.
Judge Faruqui has instructed Binance.us to submit its response by September 11, instead of the original deadline of September 5, to allow the attorneys more time to prepare their response.
The legal dispute between Binance and its CEO Changpeng Zhao began in June, when they were sued for allegedly inflating Binance’s trading volume and diverting customers’ funds. The SEC accused Binance of assisting US customers in evading restrictions and argued that the prohibitions it sought were essential to protecting investor assets.
However, in the same month, it was reported that the SEC and Binance.us had reached an agreement to ensure that US customers’ assets remain in the US. As part of this agreement, Binance would create a new crypto wallet to which its employees would have no access. A Binance spokesperson confirmed that user funds have always been and will continue to be safe and secure on all Binance-affiliated platforms.
The SEC has been actively engaging in legal battles with several crypto firms, and it has suffered defeats in cases against Ripple and Grayscale. In the case with Grayscale, the court ruled that the SEC should review the spot Bitcoin ETF application it submitted. Grayscale argued that there was no rationale to distinguish a Bitcoin futures ETP from a spot Bitcoin ETP under the legal analysis previously adopted by the Commission in rejecting spot Bitcoin ETPs.
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In conclusion, the legal battle between Binance.us and the SEC continues, with both parties filing motions and seeking protective orders. The judge has agreed with a joint stipulation filed by both parties, allowing Binance.us to submit a single filing in response to the SEC’s motions. The dispute between Binance and the SEC originated from allegations of trading volume inflation and diversion of customer funds. While the SEC has been actively engaging in legal battles with crypto firms, it has faced defeats in cases against Ripple and Grayscale.