The legal tussle between the U.S. Securities and Exchange Commission (SEC) and cryptocurrency giant Binance moves ahead. The latest court filings reveal that both parties along with related entities jointly moved for the entry of a protective order. This comes after the SEC pushed back against Binance and Binance.US to dismiss the lawsuit.
Binance bags a deal with US SEC?
According to a letter filed in the US District Court of Columbia, the order aims to regulate the treatment and disclosure of confidential details produced during the June 17, 2023 consent order. The motion, documented as Dkt. No. 71 highlights documents and information produced may contain sensitive or nonpublic details.
The parties involved in the vital lawsuit, including Binance founder Changpeng Zhao (CZ) have mutually agreed on the terms of the proposed protective order. This agreement outlines the limitation on how the confidential details will be protected and might be disclosed later throughout the litigation process.
It added that the commission and Binance proposed that any Protective Order resulting from this motion would be subject to supersession by an Order issued by Judge Jackson. However, this action is linked to a separate but pending Joint Motion for an order which was filed on September 11, 2023. That order is documented as Dkt No. 106.
SEC after the biggest crypto exchange?
The commission had filed 13 charges against Binance and its founder Changpeng Zhao. As per the complaint filed, the charges include operating unregistered exchanges, broker-dealers, and clearing agencies. It also mentions misrepresenting trading controls and oversight on the Binance.US platform with the unregistered offer and sale of securities.
Earlier, Binance’s US arm, Binance.US filed a motion to limit the extent of discovery sought by the SEC in its probe against the exchange.
Meanwhile, the defendants in the case have filed for the dismissal of the charges and lawsuit imposed by the commission. They asserted that the SEC hasn’t “plausibly alleged” securities-related violations. It mentioned that the top financial watchdog is aiming to extend its authority over digital assets without clear legislative backing, while, Congress hasn’t explicitly defined such authority.