In the ongoing legal battle between Binance.US and the U.S. Securities and Exchange Commission (SEC), a significant development occurred as a federal judge denied the SEC’s request for access to the cryptocurrency firm’s technology infrastructure. The decision came during a hearing where Binance.US lawyers argued that the SEC’s document request was overly broad and intrusive.
Federal Magistrate Judge Zia Faruqui ruled and stated, “[I’m not] inclined to allow the inspection at this time,” suggesting that the SEC should refine its request and conduct more targeted interviews with witnesses. This denial underscores the court’s reluctance to grant the SEC unrestricted access to Binance.US’s technological systems.
The SEC had previously initiated expedited discovery, a legal process designed to obtain information before the regular discovery process begins swiftly. This move was part of the SEC’s lawsuit against Binance.US, wherein the exchange platform was accused of failing to cooperate with the SEC’s ongoing investigation, as revealed in court documents unsealed the previous week.
The SEC’s complaint alleges that Binance.com and Binance.US should have registered as an exchange, broker-dealer, and clearing agency. The regulator contends that these entities operated an unlicensed securities exchange and generated a substantial $11.6 billion in fees from U.S. customers since July 2017.
Following the judge’s decision, the next hearing in this high-stakes legal dispute has been scheduled for October 12th. This case continues to draw significant attention within the cryptocurrency industry and regulatory circles, with potential implications for the broader crypto landscape in the United States.