BinanceUS’ Protective Order Against US SEC Referred To Magistrate Judge, What’s Next?

In the latest development in US Securities and Exchange Commission (SEC) lawsuit against Binance, BinanceUS, and CEO Changpeng Zhao, Judge Amy Jackson has referred protective order motion by BinanceUS to Magistrate Judge Faruqui. Before the order, former SEC official John Reed Stark made several predictions regarding BinanceUS’ protective order, along with the motion to be referred to a magistrate judge.

Former SEC Chief’s Predictions About BinanceUS Protective Order

The motion for a protective order filed by defendants BAM Trading Services and BAM Management US Holdings is referred to Magistrate Judge Faruqui for resolution, according to a filing in the court.

Judge Amy Berman Jackson ordered Magistrate Judge Faruqui to mediate the dispute between BinanceUS and SEC regarding matters mentioned in the protective order. BinanceUS argues SEC is exceeding the agreed-upon consent order, requests the court for an order to preclude depositions of BinanceUS’ CEO and CFO, and reject SEC’s demands that has nothing to do with the case.

Former SEC chief John Reed Stark’s prediction that Judge Jackson will refer Binance’s motion for a protective order to Magistrate Judge Faruqui for resolution comes out true.

Stark believes the Judge will order Binance to provide most of what the SEC requests. However, the judge may eliminate some duplicative or obviously overly broad requests. He thinks DOJ lawsuit is imminent and it will be most impacting for Binance.

“Binance-related U.S. DOJ indictment, which I believe is imminent and which will throw a wrench into the SEC/Binance civil case, wreaking at least some level of havoc, chaos and confusion into the proceedings.”

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Binance Seeks to Dismiss the Lawsuit

Binance and CEO CZ have earlier revealed plans to dismiss the SEC lawsuit along with CFTC. However, BinanceUS as a co-defendant in the SEC lawsuit limits the chances of dismissal. As a result, Binance and BinanceUS earlier agreed with SEC to separate their wallets, hardware, and teams.

Meanwhile, Coinbase filed a motion to dismiss the US SEC lawsuit alleging that the regulator acting outside its regulatory oversight and control. Senator Cynthia Lummis submitted an amicus brief in favor of the Coinbase vs SEC lawsuit dismissal.

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