As a seasoned researcher with extensive experience in the financial sector, I find this latest development in the Binance case intriguing. The recent judicial approval allowing Binance to invest customer fiat funds in U.S. Treasury Bills is a significant step forward for the exchange under scrutiny by the SEC.
Binance just got judicial approval to invest customer fiat funds in US Treasury Bills.
Judge Amy Berman Jackson, who is presiding over the SEC vs. Binance case, granted approval and released a decree. According to this decision, Binance is now authorized to invest select customer funds exclusively in US Treasury Bills.
The court bestowed upon BAM Trading Services Inc. and BAM Management US Holdings Inc. (Binance) the ability to make decisions regarding their assets with greater autonomy. This judgment enables Binance to hire external investment consultants for managing its corporate assets, specifically in U.S. treasury bills. However, these advisors must not have any connection to Binance.
As a researcher examining the court document, I’ve come across a provision stating that not all funds are permissible for investment. The text further elucidates that these restricted funds are presently held by BitGo.
Despite any conflicting terms in the Consent Order, BAM has been given permission to utilize specific customer funds held at BitGo for purchasing US Treasury bills with maturities set every four weeks.
“BAM is authorized to invest certain customer fiat funds currently custodied at BitGo in United States Treasury bills that will mature on a rolling four-week basis”
Wild given SEC probed Paxos over sharing t-bill revenue split for BUSD w/Binance.
— DeFiyst (@DeFiyst) July 19, 2024
The SEC, or United States Securities and Exchange Commission, is taking legal steps against Binance.US due to accusations of non-compliance with regulatory rules.
The accusations encompass issues relating to the BNB token’s initial coin offering and subsequent sales, as well as the BNB Vault program. Furthermore, there are claims of neglecting registration requirements and disregarding anti-fraud legislation.
The Securities and Exchange Commission (SEC) is bringing charges against Changpeng Zhao, the ex-CEO of Binance. According to the SEC, Zhao held significant influence over Binance’s operations, making him a controlling figure. As such, the cryptocurrency trading platform was obligated to register with the Exchange Act but failed to do so under his watch.
Treasury bills
U.S. Treasury Bills are widely favored investments for their high level of safety, backed by the unwavering credibility of the U.S. government.
Beyond this, Treasury bills provide both accessibility to cash and a reliable yield, making them perfect for safeguarding funds with a slight income. Through incorporating Treasury Bills into its investment portfolio, Binance can boost the security and financial gains for its clientele.
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2024-07-19 19:40