- 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.
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.
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