Binance‘s US branch, Binance.US, filed a motion for a protective order, and the US Securities and Exchange Commission (SEC) opposed it, leading to both parties submitting a joint stipulation and protective order. Furthermore, the recent court filing indicates that the SEC has requested access to “sealed documents,” suggesting that many people need to be prepared for impending bad news.
According to a court record dated September 5, 2023, the plaintiff, the US federal regulator SEC, and the defendants BAM Trading Services and BAM Management US Holdings (Binance.US) have submitted a joint stipulation and protective order. A stipulation is an official legal agreement between the parties made before a pending hearing or trial.
The court records appear to be related to Binance.US’s motion for a protective order and the SEC’s objection to the protective order. The world’s largest cryptocurrency exchange argues that the SEC has exceeded the boundaries set in the agreed-upon consent order, and it seeks a protective order to prevent the deposition of Binance.US’s CEO and CFO. Binance also opposes the SEC’s unrelated requests in the case.
The SEC has agreed to allow Binance.US to submit a single memorandum in response to the SEC’s request for access to “sealed documents” and objection. Both parties have requested a court order regarding BAM Trading Services and BAM Management US Holdings’ objection, which is due on September 11.
The recent court records regarding the lawsuit between the SEC and Binance reveal that it pertains to the SEC’s objection to Binance’s protective order motion using the confidential file it held on August 28. It is speculated that the confidential file will be used for the motion for enforcement and assistance. A motion for enforcement is typically made to the court to enforce the opposing party’s information request in discovery disputes.
Experts believe that the SEC will compel Binance.US to provide financial reports and other details in compliance with a prior consent order. The SEC also seeks assistance in the case, but the details of this assistance request are unknown due to the confidentiality of the file.