Former SEC official John Reed-Stark made a comprehensive assessment of the Binance and SEC case. Reed-Stark says observers should expect some sparks in the case, referring to the tension.
Comprehensive analysis of Binance and SEC case
John Reed Stark, a former Administrator of the United States Securities and Exchange Commission (SEC), says the crypto world should “expect some fireworks” at the next hearing between the regulator and Binance. In his usual style, Reed Stark took the time to review the status of the Binance and SEC legal battle. The latest petition filed by Justice Faruqui reveals the outlook of the trading platform’s relationship with Ceffu.
Reed maintains his status as a prominent critic of cryptocurrencies and industry supporters like Binance. Even so, he is critical of the exchange’s current team of lawyers, who he says are working overtime to pursue a case they are not sure they can win. The former SEC Administrator begins his lengthy review this way:
The SEC attacked Binance and threatened to seek an infringement order. The litigation battle between the SEC and Binance continues to escalate exponentially. Notably, thanks to some limited “judicial unsealing” (albeit with a lot of redaction), it is no longer a secret that the SEC has accused Binance-related entities in the US of: 1) Withholding critical information about who controls their clients’ assets; and 2) Failure to comply with critical expedited discovery requirements.
SEC Lashes Out At Binance, Threatening To Seek A Contempt Order
The litigation war between the U.S. Securities and Exchange Commission (SEC) and Binance continues to heat up exponentially.
Specifically, thanks to some limited “judicial unsealing,” (albeit amid lots of… pic.twitter.com/QhrifkACL4
— John Reed Stark (@JohnReedStark) September 16, 2023
The giant crypto exchange will have to fight harder!
The level of uncertainty in the Binance and SEC case is quite high. Reed admits this case will be difficult to understand. Additionally, Reed notes that both outside observers and in-house counsel may be stunned when the Court’s next hearing occurs, scheduled for early next week.
Meanwhile, some top executives have left the company in recent days. Amid these developments, Reed predicts more struggles for the stock market. Lawyers for both the SEC and Binance continue to defend their cases. Reed says there will be a lot of finger-pointing and fake outrage “during what will undoubtedly become an SEC/Binance DC federal court case.”
Will Binance break a record?
Binance has operated as the dominant trading platform since its inception in 2018. With its growth came varying degrees of complexity. It has also become the most monitored trading platform by regulators around the world. Besides, the SEC case will be the biggest Litmus test in its short history.
As you follow from Kriptokoin.com, the expectations of the industry are currently high. Additionally, many are wondering whether Binance has a solid defense for its case that will help it set a new crypto-legal record to follow the likes of Ripple Labs and Grayscale Investments signed in the last few months.
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