In a recent blow to the US Securities and Exchange Commission (SEC), a federal magistrate judge has rejected the regulator’s request for immediate access to Binance.US’s software.
The decision comes as part of the ongoing case between the SEC and the crypto-trading platform, which has been facing scrutiny over its operations.
SEC Faces Hurdle In Obtaining ‘Key’ Information From Binance.US
According to a Bloomberg report, the SEC had sought to delve into Binance.US’s technological infrastructure and obtain other requested information, citing difficulties in obtaining crucial data since filing the lawsuit against the American exchange, its international affiliate Binance Holdings Ltd., and CEO Changpeng Zhao in June.
However, Judge Faruqui, presiding over the hearing, declined the SEC’s request, emphasizing the need for more specific discovery requests. He suggested that the regulator should engage with a broader range of witnesses and provide clearer outlines for its information requirements.
The denial of immediate software access raises challenges for the SEC, as it seeks to gather essential evidence and insights into Binance.US’s operations. The judge’s proposal echoes the necessity for the SEC to refine its discovery requests and adopt a more targeted approach in its pursuit of information.
The SEC’s motion to compel, filed ahead of yesterday’s hearing, highlighted concerns over an “accelerating mass exodus” of Binance.US employees who potentially possess vital information regarding the custody, control, and availability of assets.
As reported by Bitcoinist on Monday, the SEC firmly asserts that Binance.US has not fulfilled its discovery obligations in response to the SEC’s requests for production and interrogatories.
However, the denial of immediate software inspection signifies a setback for the SEC, which now faces the task of refining its legal strategy and strengthening its information-gathering efforts.
As the case continues, both sides will navigate the complexities surrounding regulatory oversight in the crypto-trading landscape, with Binance.US’s compliance and transparency coming under increased scrutiny. The outcome of the ongoing legal dispute between the SEC and Binance.US will undoubtedly shape the future regulatory framework for cryptocurrency exchanges operating in the United States.
At present, Binance Coin (BNB) is trading within a range that has formed following the recovery from the overall market downtrend. The token initiated an upward movement starting from the $208 level and has now entered a consolidation phase between $212 and its current price of $217.
However, in the past 24 hours, it has experienced a 1% decline. Nevertheless, BNB has maintained a significant portion of its gains over the last 7 days, with a recorded profit of 2.6%. Despite the recent minor setback, BNB’s overall performance remains positive in the short term.
Featured image from iStock, chart from TradingView.com