A judge has approved Binance.US to invest certain customer assets in U.S. Treasury bills, under specific conditions to ensure asset security and compliance.
Points
- Binance.US receives approval to invest customer assets in U.S. Treasury bills.
- Investments to be managed by third-party advisers, ensuring compliance and security.
- Crypto assets must be transferred to a third-party custodian.
Binance.US has received a judge’s approval to invest certain customer assets in U.S. Treasury bills. This decision is part of an order setting specific conditions for the crypto exchange to ensure asset security and compliance with regulatory standards.
Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia signed the order, requiring Binance.US to work with third-party investment advisers to manage the investments. Additionally, Binance.US must transfer its crypto assets to a third-party custodian not affiliated with the exchange. BAM Trading Services Inc. and BAM Management US Holdings Inc. （collectively known as BAM） will handle these investments, ensuring that customer fiat funds custodied at BitGo are invested in Treasury bills that mature on a rolling four-week basis.
The order stipulates that no Binance entities can be involved in the investment process, and BAM must maintain sufficient dollar reserves on its platform to cover customer withdrawal requests. This move is part of the ongoing case brought by the U.S. Securities and Exchange Commission （SEC） against Binance, which includes allegations of misleading customers, improper fund management, and operating as an unregistered exchange.
Judge Jackson’s ruling mostly rejected Binance’s motion to dismiss the SEC’s case but did dismiss some points, such as the claim that secondary sales of BNB were securities. The case continues to unfold, with Binance.US taking steps to comply with the court’s conditions.
Cointelegraph
解説
- Regulatory Compliance: The approval to invest in U.S. Treasury bills under strict conditions reflects Binance.US’s efforts to comply with regulatory requirements. Working with third-party advisers and custodians ensures transparency and security in managing customer assets.
- Legal Developments: The ongoing legal battle with the SEC highlights the regulatory challenges faced by cryptocurrency exchanges. Compliance with court orders is crucial for maintaining operations and rebuilding trust with users.
- Investment Strategy: Investing in U.S. Treasury bills is a conservative approach that provides stability and security for customer assets. This strategy can help mitigate risks associated with the volatile cryptocurrency market and ensure liquidity for customer withdrawals.