As a seasoned researcher with a background in financial regulation and digital assets, I find the recent decision by US District Judge Amy Berman Jackson in the Binance case particularly noteworthy. Having closely followed the developments in this complex case, it is clear that her ruling represents a significant step forward for regulatory clarity in the crypto space.
US District Judge Amy Berman Jackson of Columbia has authorized Binance‘s American division to utilize specific customer deposits in the form of fiat currency for investing in US Treasury bills, which have a maturity period of approximately four weeks. Binance is required to keep these funds with BitGo for safekeeping while ensuring they possess sufficient resources to cover customer withdrawal requests at all times.
In the filing before the court, it is stated that:
Binance has the option to put its corporate cryptocurrencies in the hands of external investment advisors and managers, whom it does not own or control in any manner. It is essential for Binance to prevent these managers from investing the crypto back into Binance and its associated entities. To secure clients’ assets and interests, Binance should employ a third-party custodian to keep their managed cryptocurrencies in safekeeping.
As a responsible crypto investor, I believe it’s essential that Binance doesn’t hold sole responsibility for transferring and withdrawing assets. Instead, they should work in collaboration with a trusted custodian to ensure secure handling of client funds. By doing so, neither Binance nor the custodian will have complete control over the assets.
Judge Jackson’s latest decree is consistent with her previous rulings concerning the exchange’s business dealings. Not long ago, she determined that Binance Coin (BNB) did not classify as a security when traded on secondary markets – a claim put forth by the Securities and Exchange Commission (SEC).
In connection with the accusations against Binance, the very same suit encompasses additional allegations. The Securities and Exchange Commission (SEC) asserts that Binance provided unlawful investment contracts via its staking program, sold BNB tokens during an Initial Coin Offering (ICO) without complying with securities laws, and neglected to register under the Exchange Act. Trials for these claims, headed by Judge Jackson, will follow separately.
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2024-07-21 22:07