Judge denies Binance and SEC request for protective order to avoid filings under seal Judge denies Binance and SEC request for protective order to avoid filings under seal
Binance and SEC faced with strategic reevaluation after judge denies protective order.
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Updated: Nov. 15, 2023 at 9:18 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Judge Amy Berman Jackson has denied the joint motion for a protective order in a notable development in the legal tussle between Binance, the world’s largest cryptocurrency exchange, and the U.S. Securities and Exchange Commission (SEC). This decision underscores the heightened scrutiny and legal complexities characterizing the cryptocurrency sector’s current regulatory landscape.
The recent order from Judge Jackson rejects the proposed protective order, which aimed to limit the disclosure of sensitive information, potentially including non-public data. This move aligns with the court’s adherence to the principle against sealed proceedings, necessitating any confidential information intended for sealing accompanied by a motion for leave to file under seal, as per Local Civil Rule 5.1(h).
The protective order’s denial has several critical implications:
- Limited Public Access to Sensitive Information: The proposed order aimed to restrict public access to certain documents and data, which could have included proprietary business information, strategies, or personal data. The denial of this motion maintains a higher level of public access and scrutiny.
- Controlled Disclosure and Legal Strategy: The protective order was intended to ensure controlled disclosure of sensitive information, primarily to legal parties involved in the case. Its denial may necessitate a strategic reevaluation by the SEC and Binance in handling complex, sensitive information.
- Impact on Transparency: While protective orders are standard in litigation, their denial, in this case, preserves a higher degree of transparency in the legal process, potentially affecting public and investor perceptions of the ongoing litigation.
Significantly, while denying the motion for a protective order, Judge Amy Berman Jackson’s order does not close the door on Binance and the SEC entirely. She has expressed openness to approving a revised protective order, provided it complies with the requisite legal standards. This includes adhering to the presumption against sealed proceedings and the requirement for an accompanying motion for leave to file under seal, as outlined in Local Civil Rule 5.1(h).
The judge’s stance suggests a willingness to consider protective measures that balance legal procedural requirements with the confidentiality concerns of both parties. This opportunity to refile underlines the court’s recognition of the sensitive nature of information in high-profile cases like this while upholding the principles of legal transparency and public access to proceedings.
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Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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BNB, or Binance Coin, is a cryptocurrency created by Binance.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.