• 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 chartBNB 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.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Google, Apple could remove Binance from their app store on Philippines SEC request

Google, Apple could remove Binance from their app store on Philippines SEC request

The Philippines SEC has requested Google and Apple to remove applications controlled by Binance from their App stores. The exchange’s Philippines-based users are finding the exchange inaccessible to remove their funds. 

More Binance News

XRP rallies as Ripple slams SEC for penalties, asks regulator to establish likelihood of future violations

XRP rallies as Ripple slams SEC for penalties, asks regulator to establish likelihood of future violations

Ripple filed its response to the SEC lawsuit on Monday, arguing that XRP institutional sales before and after the court ruling show no disregard for the law. The firm asks for a civil penalty of no more than $10 million against the $2 billion requested by the SEC.

More Ripple News

Here’s why Ondo price hit new ATH amid bearish market outlook Premium

Here’s why Ondo price hit new ATH amid bearish market outlook

Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.

More Cryptocurrencies News

PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange

PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange

Pendle price is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin (BTC) price.

More Cryptocurrencies News

Bitcoin: BTC post-halving rally could be partially priced in Premium

Bitcoin: BTC post-halving rally could be partially priced in

Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

Read full analysis

BTC

ETH

XRP