- The new US Securities and Exchange Commission (SEC) administration makes a grand move to issue a joint motion with Binance to stay the case for 60 days.
- Prior to this, SEC was reported to have reassigned one of the top officials of its crypto units to another department, hinting at its latest plan to take a soft approach against the industry.
In a previous update, we reported that the US Securities and Exchange Commission (SEC) has sued Binance and all affiliated companies on 13 charges. According to that report, the Agency accused the crypto exchange of failing to adhere to basic Know-Your-Customer (KYC) rules and allowing US citizens to create accounts without acquiring the necessary licenses.
At that time, it was alleged that Binance-linked tokens – BNB and BUSD stablecoin were securities and were unlawfully issued to customers. As detailed in our previous news piece, 10 cryptos that were listed in the original lawsuit as securities were later revised in an amended complaint.
We allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law. The public should beware of investing any of their hard-earned assets with or on these unlawful platforms.
However, the case began to take a different turn following the stepdown of Gary Gensler and the appointment of Mark Uyeda as an acting Chairman of the Commission.
Based on the latest report at our disposal, Binance and SEC have filed a joint motion to stay the case for 60 days. According to a document shared by Fox Business journalist Eleanor Terrett, the new SEC crypto taskforce was cited to be “having a possible bearing on the case.”
After 60 days, the case is expected to take a new twist as both parties could “issue a joint status report” to observe whether the case could be continued. Meanwhile, this development has also been hinted to not end with Binance as Ripple, Coinbase, Kraken, and other non-fraud cases could have similar fate.
SEC vs. Ripple Update
The SEC is also reported to be taking a soft stance against Ripple in the multi-year lawsuit as the Agency reassigns one of the top officials in the crypto unit, Jorge Tenreiro, to another department. According to the source, Tenreiro played a huge role in the lawsuit against the blockchain company, and this decision could imply that the case is nearing a positive resolution.
Echoing a similar hint, crypto expert Del Crypto has also disclosed that the reshuffle of the SEC official could lead to a positive outcome. Similarly, Ripple Chief Legal Officer Stuart Alderoty has highlighted that the transition of leadership could be a way of changing the existing views of the Commission on the industry.
For a long time, Alderoty has maintained that the lawsuits from the SEC are a declaration of war on crypto. Meanwhile, the Commission recently failed to oppose Coinbase’s motion for an interlocutory appeal, hinting at a possible change in position.
Following the recent development in the Binance case, the broad crypto market has made an appreciable move with a 2.3% surge in the total market cap. XRP, which stands to benefit greatly from such news, has also recorded a 4% surge in the last 24 hours to trade at $2.5. According to our recent analysis, this asset could hit $8 in the near term.
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