SEC vs. Binance: Is middle ground possible?

READ TIME - 2 min 17 seconds

Author

Daniel Akpobare
June 14, 2023

This is The Crypto Explorer! your Crypto tour guide.

A warm welcome to the 42 folks who joined us yesterday

Here’s what we got for you today:

  • 🤔 SEC vs. Binance: Is middle ground possible?

  • 🙄 SEC delays answer to Coinbase's request for clarity.

  • 🧱 Around The Block: North Korean hackers swipe over $100M from Atomic Wallet users.

🤔SEC vs. Binance: Is Middle Ground Possible?

A decision has been reached on the SEC’s restraining order to freeze assets of Binance.US.

Well, not exactly a final decision. 😬

During a hearing on June 13, U.S. District Judge Amy Berman Jackson referred the two organizations to a magistrate judge to find a compromise solution that protects customer funds without shutting down the exchange entirely.

She believes that shutting down the exchange entirely would have significant consequences, not just for Binance.US but for the overall digital asset markets.

I mean, even the Judge knows that if Binance bleeds, the whole market bleeds.😟

Judge Jackson also stated that she would not make a final decision on the SEC's motion for a temporary restraining order until the two parties had worked through the situation with the magistrate.

So now, Binance.US and the SEC are working on an arrangement to avoid freezing all of Binance.US's assets.

Can you imagine the tension in those negotiation rooms?

Both sides have been at each other's throats since forever, will they find a middle ground, or will the gloves come off? 🥊

An update on the negotiations with the magistrate is scheduled for June 15th.

🙄 SEC Delays Answer to Coinbase's Request for Crypto Clarity.

The SEC has requested a four-month extension to respond to Coinbase's request for regulatory clarity regarding cryptocurrencies.

Here’s a recap of the events that led to this:

Coinbase filed a mandamus petition requesting federal courts to instruct the SEC to issue clear guidelines for crypto exchanges.

The SEC was then slapped with a 10-day deadline to respond.

But the SEC only responded 12 days later with an astounding “NO”, alleging that Coinbase has no right to mandamus and even if they're willing to oblige them, no statute or regulation requires the SEC to take such action on a specific timeline.

But the court wasn't about to let the SEC get away with such a lacklustre response.

The court issued an order on June 6, demanding that the SEC submit a letter within seven days clarifying whether they were denying the rulemaking or simply needing more time to respond.

Fortunately, the SEC complied with the court's order this time, but it may not be the outcome desired.

In their letter submitted to the U.S. Court of Appeals for the Third Circuit on June 13, the SEC stated that the mandamus petition should be denied, however, it should be able to provide a recommendation on Coinbase's petition for rulemaking within the next 120 days.

We're in for another four months of nail-biting anticipation as we wait for the SEC's recommendation, that’s if it’s granted. 🤷

And of course, Coinbase is not pleased with this response.

Coinbase's chief legal officer, Paul Grewal, criticized the SEC's response on Twitter, noting that it repeated the fallacy that no decision had been made regarding new regulations.

So there you have it, folks. The never-ending battle of Coinbase vs. the SEC continues. 😩

🧱 Around The Block: North Korean hackers swipe over $100M from Atomic Wallet users.

That's all we've got for you today.

Please don't forget to rate today's email and let us know what you like about it.

In any case, see you tomorrow, or on Twitter, if you're there: @danielakpobare

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.

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