Binance and SEC reach agreement on U.S. customer funds

The deal aims to address the SEC's concerns while awaiting judicial approval.

Under the proposed agreement, Binance.US, the U.S.-based crypto trading platform, will take measures to restrict access to customer funds exclusively to Binance.US employees. It specifically prohibits officials from Binance Holdings, the global exchange, from accessing private keys for wallets or hardware wallets, as well as root access to Binance.US's Amazon Web Services tools.

Additionally, Binance.US will provide detailed information about its business expenses, including estimated costs, in the coming weeks.

The agreement comes in response to the SEC's motion to freeze all of Binance.US's assets while pursuing securities-related charges against the exchange. The SEC expressed concerns about the potential movement of funds offshore or destruction of records if a temporary restraining order (TRO) was not granted.

Binance.US's legal representatives argued against a complete asset freeze, likening it to a "death penalty" for the platform.

While the proposed agreement is a significant step towards resolving the SEC's concerns, it still requires approval from the federal judge overseeing the case.