BinanceUS Vs The SEC: Protective Order Referred to Magistrate Judge, What’s in Store?

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BinanceUS and the U.S. Securities and Exchange Commission (SEC) continue to unfold as the protective order motion by BinanceUS has been referred to Magistrate Judge Faruqui for resolution by Judge Amy Jackson. Here’s a look at the latest twists and turns in this legal battle.

A High-Stakes Legal Battle

Judge Amy Jackson has decided to put BinanceUS’s protective order motion over to Magistrate Judge Faruqui for a ruling. Now, BinanceUS has been caught in the web of bureaucracy, accusing the SEC of exceeding the boundaries of an agreed-upon consent order. I bet you can guess what they want: more control.

BinanceUS’s Plea: An Honest Request or Just More Legal Jargon?

BinanceUS is begging the court to:

• Keep their CEO and CFO away from SEC’s endless depositions
• Say no to the SEC’s wild demands that have nothing to do with the case at hand

Are these unreasonable requests? You decide.

Former SEC Chief’s Insightful Predictions

John Reed Stark, a former SEC chief, made several accurate predictions regarding the BinanceUS protective order and the referral to Magistrate Judge Faruqui. Stark believes that while the judge may grant most of the SEC’s requests, certain duplicative or overly broad requests may be eliminated.

He also ominously predicts an imminent U.S. Department of Justice (DOJ) lawsuit against Binance, a move that could “throw a wrench” into the proceedings.

In a bold strategic move, Binance and CEO CZ previously unveiled plans to dismiss the SEC lawsuit, along with that of the Commodity Futures Trading Commission (CFTC). However, BinanceUS’s co-defendant status limits the chances of dismissal, leading to an agreement with the SEC to separate wallets, hardware, and teams.

Coinbase’s Parallel Battle with the SEC

Adding to the drama, Coinbase has filed a motion to dismiss the US SEC lawsuit, alleging that the regulator is overstepping its regulatory boundaries. Senator Cynthia Lummis even submitted an amicus brief supporting Coinbase.

Here’s a thought: maybe it’s time to ask whether all this regulation and litigation is helping the crypto companies or just feeding the beast of big government. You decide!