Binance, the global cryptocurrency exchange, and the U.S. Securities and Exchange Commission (SEC) have reached an agreement that will prevent the freezing of Binance US assets, according to court documents. The proposed deal aims to address the SEC’s concerns without imposing immediate restrictions on Binance US operations. The agreement is awaiting approval from the federal judge overseeing the case.
The Agreement
Under the agreement, Binance US will take measures to ensure that only its employees have access to customer funds, safeguarding against any interference from Binance Holdings officials. These steps include restricting access to private keys for wallets, hardware wallets, and root access to Binance.US’s Amazon Web Services tools. Additionally, Binance US will create new crypto wallets that will be inaccessible to global exchange employees.
Read more: SEC’s Asset Freeze Request on Binance US Rejected by Federal Judge
Key Provisions
Apart from securing customer funds, the proposed agreement includes provisions such as providing detailed information about Binance US’s business expenses, and estimated costs and adhering to an expedited discovery schedule.
It aims to address the SEC’s concerns raised in its motion for a temporary restraining order, which sought to freeze Binance US’s assets. By entering into this agreement, Binance.US aims to cooperate with the SEC and prevent any disruption to its operations.
Legal Background
The SEC recently filed a lawsuit against Binance, its CEO Changpeng Zhao, and the operator of Binance US, as part of an intensified crackdown on the cryptocurrency industry. The regulatory body also sued Coinbase, a major U.S. exchange, in a similar move. Binance.US had temporarily suspended dollar deposits and set a deadline for customers to withdraw their funds after the SEC’s legal action. The proposed agreement aims to address the SEC’s concerns while ensuring the continuity of Binance.US’s services.
Conclusion
Binance and the SEC have reached a preliminary agreement to prevent the freezing of Binance’s US branch’s assets, ensuring that customers’ funds remain accessible. The proposed deal, subject to approval from the federal judge, outlines measures for the US Exchange to separate itself from Binance Holdings and enhance security protocols. By entering into this agreement, Binance US aims to address the SEC’s concerns while maintaining its operations and cooperating with regulatory authorities.
