Recently, the U.S. Securities and Exchange Commission (SEC) was dealt a blow when a federal district judge denied the regulator’s request for immediate access to Binance.US software.
The decision is part of an ongoing case between the U.S. Securities and Exchange Commission and the cryptocurrency trading platform, whose operations have been facing scrutiny.
SEC faces hurdles in getting ‘critical’ information from Binance.US
According to Bloomberg ReportSince filing a lawsuit in June against the U.S. exchange, its international affiliate Binance Holdings Ltd. and CEO Changpeng Zhao, the SEC has been trying to delve deeper into Binance.US’s technical infrastructure and obtain other needed information.
However, Judge Farooqui, who presided over the hearing, rejected the SEC’s request, emphasizing the need for a more specific discovery request. He suggested regulators should engage with a wider range of witnesses and provide a clearer outline of their information requests.
The denial of immediate access to the software poses a challenge for the SEC as it attempts to gather important evidence and insights into Binance.US operations. The judge’s proposal echoes the need for the SEC to refine its discovery requests and take a more targeted approach in pursuing information.
The SEC’s motion to compel, filed ahead of yesterday’s hearing, highlights concerns about an “accelerated mass exodus” of Binance.US employees who may possess important information about the custody, control and availability of assets.
as report On Monday, Bitcoinist said that the U.S. Securities and Exchange Commission (SEC) firmly asserted that Binance.US did not meet its discovery obligations under the SEC’s production and interrogatory requests.
However, the rejection of an immediate software inspection represents a setback for the SEC, which now faces the task of refining its legal strategy and stepping up its information-gathering efforts.
As the case continues, the parties will grapple with the complexities of regulatory oversight in the cryptocurrency trading space, and Binance.US’s compliance and transparency will come under increasing scrutiny. The outcome of the ongoing legal dispute between the SEC and Binance.US will undoubtedly shape the future regulatory framework for cryptocurrency exchanges operating in the United States.
Currently, Binance Coin (BNB) is trading within a range formed after recovering from the overall market downtrend. The coin started rising from the $208 level and has now entered a consolidation phase between $212 and the current price of $217.
However, over the past 24 hours, there has been a 1% decline. Despite this, BNB has retained a large portion of its gains over the past seven days, recording a profit of 2.6%. Despite the recent slight decline, BNB’s overall short-term performance remains positive.
Featured image from iStock, chart from TradingView.com
