The ongoing legal battle between Binance and the U.S. Securities and Exchange Commission (SEC) has garnered significant attention. As discussions surrounding a potential settlement between the two parties intensify, a former SEC official has put forward an interesting perspective on how the case may be finalized.
John Reed Stark, Former Chief of the SEC Office of Internet Enforcement has suggested that the Binance-SEC agreement, if reached, could be presented as a “Consent Order ” before the court. In this context, a Consent Order would provide Binance and the SEC a framework to settle their disputes without further litigation.
Implications of a Consent Order
Additionally, Stark stated that the formulation of a robust and meticulously drafted consent decree has the potential to grant the SEC the majority, if not all, of the relief it has requested.
Furthermore, he highlighted that such a consent decree would enable the Judge to maintain the status quo and effectively oversee the discovery process, motions, and trial in a more traditional and expedited manner.
Judge Declines SEC’s Request to Freeze Binance.US Assets
Meanwhile, in a recent hearing, U.S. District Judge Amy Berman Jackson made a significant decision by declining the SEC’s request to freeze the assets of Binance’s US arm.
While the decision is a victory for Binance in the short term, it does not signify the end of the legal battle between the exchange and the SEC. Instead, it may open up the possibility for both parties to explore a potential settlement.
It is worth mentioning that Binance.US has recently made an announcement regarding the temporary suspension of USD deposits. This decision comes amidst reports suggesting that its bank partners are planning to pause dollar payments in the upcoming week.
Outcomes of a Potential Settlement
Remarkably, a potential settlement, if reached, could involve a range of outcomes. It might include Binance agreeing to register its offerings with the SEC and implementing enhanced compliance measures to ensure adherence to US securities laws.
In addition, financial penalties and disgorgement of any illegitimate gains may also be on the table.