A few days ago, the U.S. arm of Binance exchange filed a protective order against the United States Securities and Exchange Commission (SEC) for its excessive encroachment in its bid to gather evidence in its charges against the firm. In a new twist, Judge Amy Berman Jackson referred the case to a magistrate court, which will be presided over by Judge Faruqui.
Many industry experts indicated earlier that this is likely the direction in which the protect order filing will go. The referral to a lower court is an attempt by Judge Jackson not to derail from the crux of the matter at hand.
The SEC has accused Binance of illegally serving U.S. customers while also supporting the trading of unregistered crypto securities. With more than 10 offenses levied against the trading platform, current indications show that Binance and its affiliates are unwilling to explore the option of settlement with the SEC and are thus ready to take the fight all the way.
The case might seem complicated at this time considering the layer of complexity being added to the brawl by both parties. However, there is enough time for both Judge Jackson and Judge Faraqui to address the matter at hand.
Drawing insights from related cases
While Binance may be fighting the SEC alone as a company, the trading platform is drawing deep insights from other high-profile cases in the industry like that of Ripple Labs and the SEC as well as that of Coinbase and the market regulator.
Since there is a great deal of intersection between the charges on both outfits, a win from one might translate to a win in the other, as the basis for such a win will be used as a precedent. Based on this, many consider the Ripple win through the positive XRP lawsuit as a big win for the broader digital currency ecosystem.