Binance.US Receives Judicial Approval for Investment in US Treasury Bills

In a significant move toward integrating the cryptocurrency sector into mainstream finance, Binance.US, the American affiliate of the cryptocurrency exchange Binance, achieved a notable court victory. A federal judge has permitted Binance.US to invest certain customer assets in US Treasury bills, lifting previous restrictions imposed by the US Securities and Exchange Commission (SEC).

This court ruling allows Binance.US to transfer crypto assets to an independent third-party custodian. Additionally, BAM, the operator of Binance.US, is now authorized to invest customer fiat funds, managed by crypto custodian firm BitGo, in US Treasury bills. These funds will mature every four weeks on a rolling basis, ensuring no involvement from any third party, including other Binance entities, in the investment process, as stipulated by the court order.

This regulatory development marks a significant turnaround for Binance.US, which has faced intense scrutiny from the SEC. Just last June, the SEC filed a lawsuit against Binance, its CEO and founder Changpeng Zhao, and the operator of Binance.US. The lawsuit accused Binance of inflating trading volumes, misappropriating customer funds, failing to prevent US customers from accessing its platform, and misleading investors about its market oversight practices.

Following these allegations, Binance and Binance.US reached an agreement with the SEC in June, ensuring that US customer assets would remain within the country to comply with regulatory and investor protection standards.

The recent court order not only alleviates some regulatory pressures on Binance.US but also underscores the company’s commitment to safeguarding customer assets and adhering to US financial regulations. By investing customer funds in US Treasury bills, Binance.US aims to provide a secure and stable investment option, enhancing transparency and regulatory compliance in its operations.