Binance has received court approval to invest customer fiat funds in US Treasury Bills, leading to a notable price recovery for Binance Coin （BNB）.
Points
- Binance receives court approval to invest customer fiat funds in US Treasury Bills.
- BNB price surges, approaching the $600 level.
- Court mandates strict conditions for fund management and transparency.
- Binance must maintain sufficient USD liquidity and update customer terms of use.
Binance has secured court approval to invest customer fiat funds in US Treasury Bills （T-Bills）, a significant development that has led to a notable price recovery for Binance Coin （BNB）. The court’s decision comes after a year of heightened scrutiny of Binance’s operations in the United States.
A court filing reveals that BAM Trading Services and BAM Management US Holdings, collectively known as BAM, filed a motion seeking relief from a consent order. The court granted the requested relief, authorizing Binance’s US subsidiary, BAM, to hire third-party investment advisors to manage corporate assets. This arrangement allows BAM to invest certain customer fiat funds, currently held at BitGo, in US Treasury Bills on a rolling four-week basis.
To ensure compliance, BAM is prohibited from involving any third parties, including Binance Entities, in these investments. The court also mandated that BAM must maintain sufficient USD liquidity on its platform to honor customer fiat withdrawal requests during the investment period. Additionally, BAM is required to amend its terms of use and provide appropriate notice to customers, aligning with the authorized investment activities.
The court’s decision follows Binance’s agreement in November to pay a settlement of $4.3 billion to the US government. This settlement included a forfeiture of $2.5 billion and a fine of $1.8 billion. As part of the agreement, former CEO Changpeng Zhao （CZ） faced charges of violating the Bank Secrecy Act and agreed to step down from his position. CZ is currently serving a four-month sentence.
Currently trading at $597, BNB’s price has risen over 5% on the news, after dropping as low as $455 on July 5. Over the past two weeks, the token has seen significant gains in line with the overall market recovery. In the seven- and fourteen-day time frames, BNB is up 12% and 20%, respectively, coupled with a 47% increase in trading volume over the past few days to $1 billion, according to CoinGecko data. Despite this, the token is still down 17% from its all-time high of $717 set on June 6th.
Adding to the bullish momentum, BNB has surpassed the 200-day exponential moving average （EMA）, a key indicator of potential further price appreciation. This support level is crucial for maintaining upward momentum, and BNB will encounter resistance at the $610, $633, and $675 levels if the current price recovery continues.
解説
- Binance’s court-approved investment in US Treasury Bills boosts investor confidence, leading to a significant price recovery for BNB.
- The court mandates strict compliance and transparency conditions, including maintaining sufficient USD liquidity and updating customer terms of use.
- The $4.3 billion settlement and CZ’s charges underscore the regulatory challenges Binance faces, highlighting the importance of adherence to financial regulations.
- BNB’s rise above the 200-day EMA suggests potential further price appreciation, with resistance levels at $610, $633, and $675.
- Investors should monitor BNB’s price movements and market conditions to gauge the token’s long-term growth potential.