The lawsuit between Binance exchange and the United States Securities and Exchange Commission (SEC) took a new turn recently when the trading platform filed a protective order to restrain the regulator from its excessive depositions. Commenting on this new update, former SEC Chief John Reed Stark shared an insight into what to expect from the protective order motion.
As the SEC veteran noted, the duo of Binance and the SEC are antagonistic in their positions as concerns the discovery phase of the lawsuit. While Binance said it has given the regulator as much evidence to prove its customer’s assets are safe, the Gary Gensler-led commission has continued to push for burdensome new discoveries.
What Will Likely Happen Regarding Binance’s Recent Motion for a Protective Order In The SEC/Binance Case— John Reed Stark (@JohnReedStark) August 16, 2023
There’s clearly a discovery storm brewing between the SEC and Binance. Among other gripes, the U.S. arm of crypto exchange Binance Holdings is fighting an attempt by the U.S.… pic.twitter.com/LzTjsMeMWp
To break this stalemate, John Reed Stark opined that Presiding Judge Jackson will likely take a path of compromise. Should this option prove to be somewhat arduous, he said the judge may refer the case to "an experienced and trusted D.C. magistrate judge while perhaps setting a few deadlines and hearing dates to stay on course."
Should the latter option be embraced, the former SEC executive noted that Judge Jackson is likely to "assign the magistrate at a hearing or even via the docket with a Minute Order."
One in many legal brawls
Despite differences in the core details of the lawsuit between Binance and the SEC and the regulator against other defendants, the legal brawl is one of many being closely watched in the digital currency ecosystem of today.
Binance is being accused of many offenses, chief of which is supporting the trading of unregistered crypto securities. Rather than embrace the option of a settlement like Bittrex, Binance has chosen to fight the SEC until it obtains a win.
Binance will be capitalizing on the positive XRP ruling as a precedent to fight the SEC.