TL;DR
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The SEC wanted to freeze all Binance.US assets. To avoid that, Binance agreed to a deal that a former SEC enforcement agent has described as “unprecedented”.
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Binance.US will now have to do the following:
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Obtain the SEC’s monthly reports on “ordinary corporate expenses”.
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List to the SEC every account or wallet held since December 1, 2022.
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Make a list of wealth transfers worth more than $1,000 during the same period.
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All this in addition to associated financial institutions, account numbers, recipient names and reasons for each transfer.
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From what we can tell, as long as this agreement doesn’t hinder users’ ability to convert from crypto to cash (and vice versa), this new oversight shouldn’t affect most people.
Full story
Have you ever had to negotiate a game console with your parents?
If you didn’t, just know: the deals were often brokered with a bunch of parental controls on what games were played and for how long.
There is a parallel to that process and the deal that just closed between Binance.US and the SEC.
Basically, the SEC wanted to freeze all Binance.US assets.
To avoid that, Binance agreed to a deal that a former SEC enforcement agent has described as “unprecedented, exhausting and onerous.”
Binance.US will now have to do the following:
-
Obtain the SEC’s monthly reports on “ordinary corporate expenses”.
-
List to the SEC every account or wallet held since December 1, 2022.
-
Make a list of wealth transfers worth more than $1,000 during the same period.
-
All this in addition to associated financial institutions, account numbers, recipient names and reasons for each transfer.
Okay, not great for Binance.US or any of its clients who have done shady things…
But why should the rest of us care?
From what we can tell:
As long as this agreement doesn’t hinder users’ ability to convert from crypto to cash (and vice versa), this new oversight shouldn’t affect most people.
That said, this isn’t the end of Binance’s battles with the SEC – they’re going on a date (in court) in a few months.
But we’ll cross that bridge when we get there.