Binance, Binance.US, and the U.S. Securities and Exchange Commission (SEC) have reached a proposed agreement to address the regulatory concerns raised by the SEC. According to CoinDesk, the deal aims to ensure that only Binance.US employees will have access to customer funds in the short term. The agreement, which still requires approval from a federal judge, outlines several measures to safeguard customer assets.
Firstly, Binance.US will take steps to prevent any Binance Holdings officials from accessing private keys, hardware wallets, or root access to Binance.US’s Amazon Web Services tools. This separation aims to restrict the control of customer funds to Binance.US employees only.
The proposed agreement follows the SEC’s lawsuit against Binance, its CEO Changpeng Zhao, and the operator of Binance.US, signaling an escalation of regulatory actions against the cryptocurrency industry. The SEC also filed a lawsuit against major U.S. exchange Coinbase.
At the time of reporting, there was no immediate response from Binance.US or the SEC regarding the proposed agreement.
As part of the agreement, Binance.US will establish new cryptocurrency wallets inaccessible to employees of the global Binance exchange. Additionally, it will provide the SEC with additional information and agree to an expedited discovery schedule. These provisions aim to address the SEC’s concerns and facilitate a smoother resolution to the regulatory case.
In response to the SEC’s actions, Binance.US suspended dollar deposits and set a deadline for customers to withdraw their dollar funds by June 13. The SEC had requested the court to freeze Binance.US’s assets.
It is important to note that the proposed agreement is subject to approval by the federal judge overseeing the case, and further developments are expected in the ongoing legal proceedings between Binance, Binance.US, and the SEC.