U.S. District Judge Amy Berman Jackson has signed a deal between the U.S. Securities and Exchange Commission (SEC), global crypto exchange Binance and its U.S. affiliate to implement steps to ensure only U.S.-based personnel can access customer funds while the case is active.

San Francisco-based cryptocurrency payments firm Wyre is closing its doors after nearly a decade of operation, blaming the financial difficulties of the bear market, with the move reportedly having nothing to do with the strict“regulatory agency direction” in the U.S.

Nasdaq-listed cryptocurrency exchange Coinbase is petitioning for a "mandamus", a legal term for a court order issued by a higher court to a government agency. The order instructs the agency to carry out a particular duty that it is legally bound to fulfill.

Top stories in the Crypto Roundup today:

• SEC and Binance.US Reach Deal to Avoid Asset Freeze
• Crypto Payments Firm Wyre Closes Shop Over Prolonged Bear Market
• Coinbase Petitions for Court Order to Instruct SEC to Define Crypto Rules
• Regulatory Scrutiny Continues to Influence Centralised Exchanges

SEC and Binance.US Reach Deal to Avoid Asset Freeze

U.S. District Judge Amy Berman Jackson has signed a deal between the U.S. Securities and Exchange Commission (SEC), global crypto exchange Binance and its U.S. affiliate to implement steps to ensure only U.S.-based personnel can access customer funds while the case is active.

As part of the interim agreement, Binance.US will limit access to private keys for its wallets, and root access to Binance.US's Amazon Web Services tools, ensuring that no officials from Binance Holdings, the parent global exchange, can access these resources. Detailed financial data, including projected costs, is set to be shared by the U.S. entity in the coming weeks.

The agreement serves as a response to the SEC's motion to freeze all assets of Binance.US amid accusations of securities violations. The regulator voiced concerns that without a temporary restraining order, funds could be moved overseas or records could be destroyed, but Binance.US’s attorneys argued in response that an asset freeze would be akin to a “death penalty.”

Over the agreement, Binance.US will establish new cryptocurrency wallets inaccessible to global employees, provide additional information to the SEC, and comply with an accelerated discovery timeline. Customers of the exchange will be able to withdraw funds.

Crypto Payments Firm Wyre Closes Shop Over Prolonged Bear Market

San Francisco-based cryptocurrency payments firm Wyre is closing its doors after nearly a decade of operation, blaming the financial difficulties of the bear market, with the move reportedly having nothing to do with the strict“regulatory agency direction” in the U.S.

The firm announced in a blog post that it chose to shut down to “protect the best interest of our key stakeholders and customers.” The firm said it “continues to secure customer assets,” and added that those who “have assets on the Wyre platform” can “still withdraw them via Wyre’s dashboard until Friday, July 14th.”

The firm will have a different asset recovery process after that date. The firm seemingly indicated its assets are now available for purchase and it has been struggling since a potential $1.5 billion acquisition by one-click checkout company, Bolt, fell through in September 2022.

Wyre had briefly placed a 90% withdrawal limit on all user accounts earlier this year, and laid off 75 employees in January. The move sees Wyre join a growing- list of crypto and blockchain projects failing during the prolonged bear market.

Coinbase Petitions for Court Order to Instruct SEC to Define Crypto Rules

Nasdaq-listed cryptocurrency exchange Coinbase is petitioning for a "mandamus", a legal term for a court order issued by a higher court to a government agency. The order instructs the agency to carry out a particular duty that it is legally bound to fulfill.

Coinbase is essentially asking a federal judge to compel the SEC to establish more defined rules and standards for the digital asset industry, fulfilling the aim of a petition submitted by the crypto exchange last year.

While the SEC never responded to Coinbase’s petition, it filed a lawsuit against it earlier this month alleging Coibnase operates as an unregistered exchange, clearing house, and broker. The SEC’s lawsuit claims Coinbase facilitate the sale of unregistered securities on its platform.

The SEC's action didn't escape judicial attention, as a judge ordered the federal regulator to respond to Coinbase's petition. The cryptocurrency exchange didn't hold back in its criticism of the SEC, accusing it of "pushing the limits of cognitive dissonance" by demanding compliance with non-existent rules.

The SEC, under Chairman Gary Gensler, has firmly maintained that clear rules are already in place. Despite this, the agency has recently made headlines for urging courts to reject Coinbase's plea for more explicit regulations.

Regulatory Scrutiny Continues to Influence Centralised Exchanges

The crypto industry is feeling the fallout from the lawsuits the SEC filed against leading cryptocurrency exchanges Binance and Coinbase, witnessing a stark decline in volumes and liquidity across all markets.

Spot trading volume plummeted to $495 billion in May, marking the lowest monthly trading volume since March 2019. Meanwhile, the derivatives market is gaining prominence, now accounting for 80% of all trading volumes.

The impact has been significant for centralized exchanges, but has opened up opportunities for alternative exchanges operating in jurisdictions with more transparent regulatory frameworks. Europe and Asia are becoming increasingly favored destinations for digital asset entities, largely due to their pragmatic regulatory outlook.

Find out more via CCData’s latest report, The SEC Effect, which explores how regulatory scrutiny has impacted liquidity across markets, particularly in the United States.

State of the Crypto by Top Tier Exchange Volume

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