Binance.US and SEC to start negotiations Wednesday over asset freeze.

A U.S. federal judge has ordered Binance, a cryptocurrency exchange, and its local affiliate Binance.US, along with the Securities and Exchange Commission (SEC), to attend a mediation conference on Wednesday to discuss limitations on operations as the regulator’s case against the companies continues.

The SEC alleges that the Binance entities sold unregistered securities in violation of U.S. laws and later sought a temporary restraining order to freeze Binance.US’ assets. However, D.C. District Court Judge Amy Berman Jackson stated during a Tuesday hearing that there was “absolutely no need” for such an order if the parties could agree on limitations.

Prior to Tuesday’s hearing, Binance.US stated that freezing the company’s assets would “effectively end” the business. Negotiating limitations would allow the firm to continue operations in the meantime.

Judge Jackson expressed concern during the hearing that a requirement to set up another hearing within two weeks did not give the court enough time to review the thousands of pages of documents and exhibits received by the involved parties.

“What I’m looking for is some variation of what we already have. I think the nitty-gritty of it… is better handled by all of you than by me,” Judge Jackson said during the hearing, adding that an order crafted by her may not satisfy either party.

In a Wednesday order, the first mediation session was set for June 14 at 2:45 PM Eastern Time before Magistrate Judge Zia M. Faruqui, who has conducted several federal cryptocurrency investigations as a former prosecutor and has praised blockchain tracing technology as a powerful tool. He has also called the fear among regulators of “unhosted” crypto wallets held outside of exchanges “fiction, not fact.”

Read more: U.S. Judge Rebuffs SEC Request for Binance.US Asset Freeze for Now

Nikhilesh De and Jack Schickler contributed reporting.

Edited by Nikhilesh De.

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