- Binance and its subsidiary Binance US will respond to the SEC’s temporary restriction freezing order by June 12.
- As the entities grappled with the consequences of the SEC’s regulatory crackdown on the exchange, BNB price declined by 7% overnight.
- The hearing on the temporary restraining order will be held on June 13.
Crypto exchange Binance must respond to the US Securities Exchange Commission’s (SEC) order to freeze assets tied to its subsidiary Binance.US by June 12, ahead of a court hearing about the case on June 13, according to the D.C. district court schedule.
Contrary to rumors in the crypto community, the judge hasn’t approved any freezing order, and this won’t happen until the hearing is done. It isn’t clear if the judge will rule on the freezing order the same day. Still, events next week are likely to be a key driver for the price of Binance’s native token BNB.
Also read: BNB price falls 10% as US court summons Binance CEO, Changpeng Zhao
SEC’s freezing order follows lawsuit
After suing Binance for violating the US securities law, the SEC asked the court to accept a restraining order to temporarily freeze assets from Binance.US as well as from Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings, Inc., and their founder, Changpeng Zhao.
These two key dates could determine the course of action of the regulator against Binance in the lawsuit.
SEC chair possible links with Binance
Binance’s lawyers said that SEC’s chair Gary Gensler tried to join the exchange as an advisor in 2019.
According to a CNBC report, the exchange’s lawyers have claimed that Gensler once offered to serve as an advisor, adding another layer of complexity to the lawsuit.
Based on documents filed by the SEC on Wednesday, attorneys from Gibson Dunn and Latham & Watkins, two of Binance’s law firms, allege that Gensler engaged in conversations with Binance executives and CEO Changpeng Zhao in March 2019. Moreover, Gensler met Zhao in Japan later the same month, according to the filing.
BNB price declined 5.6% overnight
The developments in the lawsuit have negatively influenced the exchange’s native token BNB’s price.
Binance’s native token BNB yielded nearly 6% losses for holders overnight, as price plummeted to $262.
BNB price chart from CoinGecko
Over the past week, BNB price nosedived 13.9%, based on CoinGecko data.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.