Coinspeaker Binance vs SEC: Judge Sets Key Deadlines in Ongoing Legal Battle
In a recent scheduling conference held on July 9, Judge Amy Berman ordered both Binance and the Securities Exchange Commission (SEC) to work together and prepare a joint submission. This schedule must include a deadline by which either party can request changes or amendments to the initial complaint field. The deadline for this joint proposed schedule has been set for July 29. It was revealed that:
“The parties must meet and confer and file a joint submission by Monday, July 29, 2024, setting forth a joint proposed schedule, or if necessary, separate proposed schedules, for further proceedings. The submission should include deadlines for any motion to amend the complaint or for relief from the ruling on the motion to dismiss defendants’ answers and discovery.”
This latest development follows Binance’s recent victory over the security commission, as the court dismissed several charges brought by the financial watchdog against the exchange. In its ruling, the court dismissed charges of BNB secondary market sales on the ground that the SEC did not provide enough evidence to prove that the token sales on secondary exchanges were securities transactions. However, the court upheld other charges, including those related to the initial token offering and ongoing sales.
The Securities and Exchange Commission sued Binance and its CEO last year over various alleged wrongdoings, including diverting customer funds, misleading investors, inflating trading volumes, and failing to prevent US customers from using its platform. The SEC also says Binance allowed trading financial products that were not properly registered.
The legal battle between the SEC and Binance has sparked reactions in the crypto space. David Barrera, Co-Founder and CEO of Enumma stated on X that it is likely that the security commission might amend its initial complaint to strengthen its case or possibly request relief from the court’s recent ruling on the motion to dismiss, suggesting that the finance watchdog could be on the search for more evidence to pin more charges on the exchange. He said:
“I wonder what exactly went down this morning in SEC v. Binance. But by all appearances, it seems likely the SEC will amend the complaint (and/or ask for some type of relief from the ruling on the motion to dismiss).”
Broader Regulatory Crackdown
The ongoing legal battle between the SEC and Binance is part of the larger government effort to more closely regulate the crypto industry, which has continued to grow steadily. Similar crackdowns have been conducted against other top crypto exchanges, such as Coinbase and Kraken.
Thus, despite the SEC’s intent of mitigating the illegal activities that could be perpetuated using crypto exchanges, such as money laundering and financial support for terrorists, it has also been seen by many that it could hinder innovation in the crypto space. Binance, on the other hand, has been banned from operations in some countries due to allegations that include money laundering.
With the Binance case being closely followed and the upcoming schedule getting closer, as ordered by Judge Amy Berman, the crypto industry will hope more clarity is being given to crypto regulation.
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Binance vs SEC: Judge Sets Key Deadlines in Ongoing Legal Battle