Late last week, A United States District Court Judge approved an agreement between Binance, Binance US, as well as the SEC to dismiss an order that would freeze all assets on the Binance U.S. platform.
This followed a Temporary Restraining Order (TRO), which the SEC filed on the 7th of June as part of its initial complaint against the world’s leading centralized exchange. The TRO sought to freeze all Binance U.S. assets while the SEC continued to investigate Binance U.S. and Binance CEO ChangPeng “CZ” Zhao.
While the agreement does not resolve the lawsuit, it does provide a temporary relief for Binance and its U.S.-based customers.
“The SEC’s request would have effectively shuttered our business, which is consistent with the agency’s continued attempts to kill the crypto industry by any means, even by making allegations that are not supported by the facts.” Binance U.S. stated in a twitter post shortly after the agreement.
Under the agreement, Binance U.S. and CZ have “agreed to repatriate to the United States assets held for the benefit of customers of the Binance.US crypto trading platform.” It also prevents Binance U.S. from spending corporate assets other than “in the ordinary course of business.”
Most importantly, Binance U.S. customers will be still be able to access their funds for the duration of the litigation.
Also Read: Binance Statement To SEC: We are prepared to fight it to the full extent of the law
An Unlikely Roadblock For The SEC?
With the release of the Hinman emails, a set of documents that contextualized the SEC’s stance on cryptocurrency in 2018, it seems that Gary Gensler’s current crackdown on crypto might face unexpected hurdles.
In contrast to a previous statement by Gary Gensler, the SEC had earlier decided that Ethereum was not a security, or at least decided to hold off on an official declaration until further discussions.
Ironically, the SEC’s investigation of Ripple, a blockchain-based digital payment network and creator of the cryptocurrency XRP, had unearthed documents that the SEC had vehemently tried to keep under wraps.
Despite the emails not being the deus ex machina many thought they would be, they do represent a possible saving grace for those currently in legal battles with the SEC.
However, Ripple calling for a fresh investigation into of former chairman William Hinman has the potential to unveil a long-awaited answer to the question that has been on many minds: What exactly is the SEC’s definitive position on cryptocurrencies?
Also Read: What are the Hinman Documents and How Does it Affect Crypto, Ripple, and Ethereum?
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: Chain Debrief