In the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Binance Holdings, significant progress has been made recently. The SEC, along with defendants Binance, Binance.US, and former CEO Changpeng “CZ” Zhao, have nearly completed the discovery and deposition processes required by the securities regulator.

A joint status report submitted to the court by the plaintiff SEC and the defendants BAM Management US Holdings, BAM Trading Services (Binance.US), Binance Holdings, and Changpeng Zhao indicates that the parties have reached an agreement on all outstanding issues. This development suggests that disagreements regarding the consent order, particularly pertaining to evidence submission and the segregation of wallets, systems, and teams within Binance.US, have been largely resolved. Binance.US has complied with additional discovery requests and asserts that it has provided all relevant documents in response to the SEC's demands.

Furthermore, depositions from representatives of both Binance and Binance.US have been concluded. The SEC will now scrutinize the final submissions from the defendants to identify any lingering concerns. Discussions between the SEC and Changpeng “CZ” Zhao are ongoing, focusing on addressing the SEC's document requests. The parties aim to resolve any remaining issues through mutual agreement, thus avoiding the need for judicial intervention.

As previously reported, the Binance vs. SEC case is nearing the conclusion of the discovery and deposition phase. Binance has taken proactive steps, such as quietly separating its $10 billion venture capital arm, Binance Labs, from its crypto exchange business, in compliance with the court's consent order.

Anticipating the next steps, both the SEC and Binance are preparing for the Rule 30(b)(6) deposition, expected to take place within the next four to six weeks. This deposition aims to expedite the identification of pertinent witnesses and documents to ascertain whether Binance has violated any laws and to determine potential penalties.

Drawing parallels from the SEC's success in the Coinbase case, where it secured favorable rulings, the regulator is likely to leverage Judge Failla's decisions in the ongoing Binance lawsuit. Moreover, compared to the Coinbase case, the allegations against Binance are more extensive, suggesting that the SEC may seek substantial penalties from the defendants in a potential settlement agreement.