Judge Jackson claimed that it doesn't seem that, at this point court needs to intervene in the Binance versus SEC legal proceedings.
In a gripping development, the motion that could have barred the US Securities and Exchange Commission (SEC) from publicly commenting on the ongoing legal case involving Binance.US, Binance Holdings Limited, and its CEO Changpeng "CZ" Zhao, has been turned down by a federal judge.
The US District Court for the District of Columbia, under Judge Amy Berman Jackson, ruled on June 26th that there was no immediate necessity for the court to mediate on the grounds of the motion that Binance and Binance.US had initiated.
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The root of the motion was the SEC press release issued on June 17th, wherein Enforcement Director Gurbir Grewal expressed that CZ and Binance might "commingle customer assets or divert customer assets as they please."
On June 21st, Binance legal representatives submitted a motion, asserting that the SEC had misinformed the US public via statements about the securities lawsuit. They claimed such comments could possibly taint "the jury pool" and trigger "unwarranted confusion in the marketplace."
When talking about the motion, Judge Jackson noted:
While all of the lawyers in this case should adhere to their ethical obligations at all times, it is not apparent that Court intervention to reiterate that point is needed at this time, or that it is necessary or appropriate for the Court to get involved in wordsmithing the parties’ press releases.
She also highlighted that the SEC's PR efforts to date don't seem to have any material impact on this case.
The ongoing lawsuit filed by the SEC on June 5th targets Binance, Binance.US, and CZ, claiming that they offered unregistered securities to US customers and Binance overlooked the requirement to register as an exchange or a broker-dealer clearing agency.
Meanwhile, Binance continues to operate globally, unveiling a regulated crypto platform in Kazakhstan on June 20th. However, as of June 23rd, the Belgian Financial Services and Markets Authority directed the crypto exchange to cease offering crypto exchange and custody wallet services.
The unfolding saga involving Binance, its CEO, and the SEC will be keenly watched by all stakeholders in the cryptocurrency space. The dismissal of the motion will undoubtedly add a new dimension to this critical case.
