SEC and Binance seek compromise on US assets freeze; Binance CEO says they don’t sell Bitcoin or BNB; SEC requests four months for Coinbase’s request
The SEC, and BAM Trading (Binance’s U.S. arm) recently filed a request to ease some of the restrictions stemming from the SEC’s previous request to freeze the company’s assets.
The new proposal presented will allow BAM Trading to make payroll and other financial commitments, while providing greater assurance for the SEC:
The main condition to allow the use of assets will be that Binance will under no circumstances make payments or transfer any assets for the benefit of any Binance entity acting on behalf of Binance.
The order also states that Binance CEO CZ will not have access to any BAM Trading or Binance US assets.
Following the SEC’s lawsuit against Binance and Zhao, the commission made an urgent court request to freeze BAM Trading’s assets.
BAM Trading has announced that it is objecting to this request.
The court has not yet upheld the order at the time of publication. More details have been requested from the SEC and Binance regarding the dispute.
According to Bloomberg’s report, Judge Amy Berman Jackson has upheld the SEC and Binance’s request for a settlement on an asset freeze.
“A complete shutdown would have significant consequences not only for the company but also for the digital asset markets”
Jackson said the SEC would delay the request for an asset freeze until the work is complete.
Binance US had requested a settlement in response to the SEC’s asset freeze proposal.
Binance CEO says they don’t sell Bitcoin or BNB
Binance CEO Changpeng Zhao announced that they do not sell Bitcoin and BNB.
In a response to the allegations, CZ also used the number “4”, which stands for FUD, saying:
“Binance did not sell BTC or BNB. In fact, we still have FTT. It’s amazing how they know who is selling what by looking at a price chart that includes millions of traders. FUD”
Another user said that the people doing the FUD all appeared at the same time and that it was a coordinated effort of malicious people.
CZ also gave a sarcastic response to this tweet, saying that perhaps these people may have opened a short position.
Binance’s struggle continues
Cryptocurrency exchange Binance continues its work quickly after the lawsuit filed by the SEC. Finally, Binance US and SEC have reached a decision regarding the freezing of assets.
Continuing its hostile attitude towards the crypto money industry, the regulator targeted the USA’s largest crypto exchange Coinbase, right after Binance, with similar accusations.
Coinbase CEO Brian Armstrong, however, argued that both cases should not be confused. According to him, Coinbase has been accused of only selling unregistered securities, while Binance has also faced crimes such as deceiving investors.
SEC requests four months for Coinbase’s request
According to The Block’s report, the US Securities and Exchange Commission (SEC) said it needs 120 days to respond to Coinbase’s request.
Coinbase, the largest US cryptocurrency exchange, made a request for the SEC to be clear on digital asset rules.
The regulator stated that it has not been decided whether any action will be taken regarding the exchange’s demand. In a document submitted to the United States Court of Appeals for the Third Circuit, the SEC argued that the petition should be dismissed.
Coinbase had requested the SEC to introduce an “open rule”. This request of the exchange came before the SEC’s lawsuit against Coinbase.
Paul Grewal, Coinbase’s chief legal officer, criticized the SEC’s stance in a statement on Twitter. According to Grewal, SEC Chairman Gary Gensler ignored the comments.
Coinbase filed the relevant lawsuit in April 2022. In its response, the SEC claimed that the digital asset rules were extremely clear.
The SEC’s lawsuit against Coinbase last week set the stage for further tensions between the two parties. The regulator claimed that the exchange was engaged in unregistered sales of securities in the United States.
The exchange underlined that the allegations were unfair and that the regulator allowed Coinbase to go public.
