Tuesday was a busy day in the courts dealing with matters related to the cryptocurrency industry in the United States. Early in the day, there was a case involving Ripple Labs in a hearing with the regulator, the SEC, where it became clear that Hinman ignored numerous warnings that his speeches contained biased analyses not based on the law, which have virtually nothing to do with the Howey factor.
The hearing also exposed gaps in regulation and much more that can be reviewed and analyzed on Alderoty's Twitter page:
Now, in the case involving the SEC versus Binance, in a failed attempt to freeze the assets of the American subsidiary by the regulator, the SEC completely derailed, and the judge presiding over the case did not fall for anything the regulator wanted and was even tough on the lawyers of the regulatory entity.
As widely known, the SEC filed a request to freeze the assets of Binance US, alleging that there is a possibility that CZ, the current CEO of the platform, may have access to the funds of the Exchange because he has the private keys to the company's address, thus constituting a risk of misappropriation. However, this motivation did not convinced the judge.
The judge, who happens to be a female judge, did not buy into the manipulations of the regulatory entity and asked the lawyers if they had received any complaints about funds being withdrawn from Binance US to outside the country or if customers were having difficulty accessing their funds. Furthermore, the judge advised the two parties to reach an agreement for now and showed skepticism towards the entire theater created by the regulator lawyers to obtain a favorable decision from the judicial body.
The judge did not grant authorization to the Securities and Exchange Commission to freeze any funds of Binance US, at least for now, and mandated that the Exchange make available to the court expenses related to the company. The SEC lawyers were strongly rebuked by the judge for failing to legally prove why the assets should be frozen since they couldn't prove that CZ actually controls the private keys of Binance US.
Therefore, for now, Binance US continues to operate in full, the funds will not be frozen, and the parties must reach an agreement and provide feedback to the court by Thursday regarding the agreements they have reached.
Once again, Gary Gensler's company failed to achieve its desired goals and even lost credibility in the eyes of the court by failing to prove that there was a risk of fund drainage by CZ, as he supposedly holds the private key, turning this whole endeavor into a big circus and a waste of precious time in court by the regulator.
**Read the article below for more details on the judge's decision regarding the SEC vs. Binance US case:**
We can certainly say that the Exchange is winning 1-0 against the regulator, but there is still plenty of time in this game and anything can change or the platform can continue with a positive score. What about you? Do you have anything to say? What do you think of the judge's decision not to allow the SEC to freeze the funds of Binance US? Leave your comment below, and remember, your opinion is important.
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DYOR, always.
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