The SEC Files a Sealed Motion to Bring Secret Documents Against Binance

Late on August 28th, the US Securities and Exchange Commission (SEC) filed a sealed motion to file documents under seal, against Binance, the world’s largest cryptocurrency exchange. The motion was filed citing the Securities and Exchange Commission vs Binance Holdings Limited case.

The filing itself contains 37 documents, accessible only to authorized individuals, and, if accepted, the SEC will be permitted to file documents whilst ensuring that the sensitive or confidential information contained within is prevented from entering into the public domain. 

The move is made following some thirteen charges brought against Binance and its founder, CZ, back in June. These charges included misuse of customer funds, as well as misleading investors, and simultaneously labeled various high-profile digital assets as securities. 

In mid-August, however, Binance further filed for a protective court order, against the SEC, claiming that its requests for information were “over broad” and “unduly burdensome”.

Why is the SEC being so Secretive?

Historically, Gary Gensler and the US SEC have not held back when it comes to making their views on both cryptocurrency exchanges, as well as the wider blockchain industry, very clear indeed.

This, in turn, begs the question of why the SEC is looking to hide certain information from the public - That is, the people that will be most affected by any decisions or rulings made in the future. 

Naturally, there are countless factors that could be behind the SEC’s desire to keep certain information out of the public eye. However, one could be forgiven for seeing the regulatory body’s move as one against an ethos of regulatory transparency, especially in light of the potential impact of charges brought against the world’s largest exchange.