According to US District Judge Amy Berman Jackson, the two entities were "not that far apart" when it came to the negotiations.
Crypto exchange Binance.US is working towards a resolution with the United States Securities and Exchange Commission (SEC) to shield away from an all-encompassing asset freeze.
The negotiations were reportedly initiated by US District Judge Amy Berman Jackson. On June 14th, Bloomberg revealed that the conversations between the entities were guided toward preserving consumer finances without mandating a shutdown of the platform.
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Emphasizing the repercussions of a complete shutdown, Judge Jackson pointed out during a June 13th hearing that such an action would bring about grave consequences for both the company and the digital asset markets in general.
The statement serves as an acknowledgment of the profound impact that the closure of such a significant crypto exchange could have on the whole cryptocurrency landscape.
Taking a pause in her decision-making process regarding the SEC's request for a temporary restraining order, Judge Jackson signaled the need for the two parties to sort the situation with the magistrate. The outcome of these talks is eagerly awaited, with an update scheduled at the end of business hours on June 15th.
Observing the negotiation proceedings, Judge Jackson highlighted that the SEC and Binance.US didn't appear to be "far apart" in their attempt to settle the matter.
Before Judge Jackson's deliberation at the hearing, former SEC enforcement attorney, John Read Stark, sparked a conversation among his Twitter followers about the existing discord between the parties' desired outcomes from the hearing.
He mentioned, however, that this doesn't hinder the possibility of the judge arbitrating a compromise to find a middle ground. Stark's comments amplify the nature of the situation, clarifying that even though conflict exists, a solution could be reached.
The ongoing negotiation follows the SEC's emergency motion for a temporary restraining order on Binance.US filed on June 6th. The regulatory body accused Binance CEO Changpeng "CZ" Zhao of possessing the capability to access Binance.US customer funds. On top of that, SEC argued that Zhao transferred $12 billion of Binance's funds through an entity he controls named Merit Peak.
In a preemptive rebuttal to the SEC's accusations, both Binance.US and Zhao issued a joint memorandum on June 12th.
They dismissed the claims that funds were ever improperly handled and asserted that the SEC couldn't pinpoint a single instance where Binance.US customer funds were misused.
"There is no 'emergency' here at all, other than the one manufactured by the SEC for its own purposes," was the firm statement made by both Binance.US and Zhao, a reflection of their confidence in their handling of customer funds and a pointed critique of the SEC's actions.
