Binance.US and the Securities & Exchange Commission (SEC) are currently under a time constraint to reach a resolution and prevent a complete freeze of assets for the exchange. A federal judge has set a deadline of June 15th for the SEC and Binance.US to find a mutually agreeable solution, aiming to protect the stability of the crypto markets.

Earlier this month, the SEC initiated legal action against Binance and its affiliated entities. Following this action, the SEC requested a temporary restraining order and asset freeze. However, US District Judge Amy German Jackson has urged the SEC to seek a middle ground with Binance.US, allowing the exchange to continue its operations within the United States.

Judge Jackson has given the parties until June 15th, 5pm ET to negotiate and come to a resolution. Magistrate Judge Zia Faruqui has been appointed to assist in these negotiations, facilitating productive discussions between the SEC and Binance.US.

Additionally, Binance.US is required to provide a list of regular expenses by June 14th, 9am ET. In preparation for the court session, Binance.US had already suspended US dollar deposits and cautioned users that withdrawals could be temporarily halted.

On Tuesday, the SEC proposed a new agreement that would relax certain limitations previously put forth, which called for a complete freeze of assets. The proposed agreement includes provisions to safeguard Binance affiliate BAM Trading’s control over its US assets for necessary expenses such as salaries and financial obligations. Furthermore, BAM Trading would be allowed to assist customers in redeeming their crypto assets without restrictions.

However, the proposed order stipulates that Binance CEO Changpeng Zhao would not have access to the assets or wallets of the US exchange. The SEC has also requested that customer assets be returned to the US, where independent entities, separate from Zhao’s control, would oversee customer redemptions.

The SEC’s lawsuit, which includes 13 separate counts, alleges that foreign entities controlled by Changpeng Zhao, such as Sigma Chain and Merit Peak, were utilized to mix billions of dollars in customer funds with Binance’s own assets. These entities were purportedly involved in market-making activities and providing liquidity for the exchange.

As this situation continues to unfold, it is important to note that the SEC’s proposal is still awaiting approval. Further updates are expected, and it is advisable to seek information from reliable sources or directly from Binance for the latest developments and official statements regarding this matter.