The SEC vs. Binance: Unsealed Documents Could Spell “Reckoning Day” for Crypto

In the latest twist of the courtroom drama between the U.S. Securities and Exchange Commission (SEC) and Binance.US, both sides have entered into a joint stipulation and proposed order. This comes in the wake of Binance.US filing a motion for a protective order, which the SEC opposed.

The Dance of Legal Eagles

Attorneys for both parties have formally agreed to a stipulation. This is significant because a stipulation serves as a formal legal handshake that sets the tone for the legal proceedings that follow. This development comes as Binance.US seeks to prevent the SEC from requiring depositions of its top brass and rejecting what it sees as unwarranted demands.

On the other hand, the SEC has graciously permitted Binance.US to file a single memorandum opposing its “document under seal.” Whatever that entails, both sides are asking the court to set the date for another hearing on September 11.

The Juiciest Part of this Legal wrangling?

The SEC’s secret filing dated August 28. Although most details are strictly confidential, the document appears to counter Binance.US’s protective motion and contains a motion to compel — a legal mechanism to force information out of the opposing party.

Given the SEC’s history, the agency could be leaning on Binance.US to release a financial report or other details under a prior consent order. The word “relief” also appears in the document, but the specifics are yet to be revealed. 

Market Repercussions: The Domino Effect

As Lumid Wealth’s CEO Ram Ahluwali wisely opined on Twitter, the ongoing SEC drama could sway crypto prices. He cautioned that September is traditionally a shaky month for Bitcoin and that the SEC’s decision could further destabilize the market. However, he also presented a silver lining: if the Binance news causes a sell-off, it could mark a buying opportunity.