Binance Gets Court Approval to Invest in US Treasury Bills

Binance Receives Judicial Approval for Investment in US Treasury Bills

Binance has secured judicial approval to invest customer fiat funds in US Treasury Bills. The approval, signed by Judge Amy Berman Jackson, is part of the ongoing SEC v. Binance case. The ruling permits Binance to invest specific customer assets in United States Treasury Bills.

The court granted BAM Trading Services Inc. and BAM Management US Holdings Inc. (Binance) the flexibility to manage their assets more freely. This decision allows Binance to engage third-party investment advisors for its corporate assets, particularly in U.S. treasury bills, as long as these advisors are not linked to Binance.

The court document specifies that only “certain” funds can be invested and clarifies that these funds are currently in BitGo’s custody. The ruling states,

“BAM is authorized to invest certain customer fiat funds currently custodied at BitGo in United States Treasury bills that will mature on a rolling four-week basis.”

The broader court case involves the U.S. Securities and Exchange Commission (SEC) pursuing legal action against Binance.US for alleged regulatory non-compliance. The charges include issues related to the initial coin offering and sales of the BNB token, as well as the BNB Vault program. Additionally, there are allegations of failure to register and non-compliance with anti-fraud regulations.

The SEC also charges former Binance CEO Changpeng Zhao, asserting that he acted as a controlling person and that the trading platform was required to register under the Exchange Act.

Why U.S. Treasury Bills?

U.S. Treasury Bills are a popular investment due to their reputation as one of the safest options, supported by the full faith and credit of the U.S. government. They offer liquidity and a predictable return, making them ideal for preserving capital while earning a modest interest. By diversifying into Treasury Bills, Binance can enhance the safety and return on investment for its users.

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