US Court Grants Binance Approval to Invest Customer Funds in US Treasury Bills

A United States court granted Binance significant opportunity permission to invest customer funds in US Treasury Bills on July 19.

A US court has granted Binance permission to invest certain customer funds in US Treasury Bills on July 19. This decision comes as the cryptocurrency exchange is facing increased scrutiny from regulators over its handling of customer assets.

The order, filed by the United States District Court for the District of Columbia, allows Binance to invest customer funds through a third-party investment manager, provided that the funds are not reinvested in the company or any related entities, according to Cointelegraph.

The court also ordered Binance to include information on the expenses incurred for the custodianship of US treasury investments in its monthly report, which details its business operations and costs.

This decision could have implications for the role of cryptocurrency in supporting the ailing US dollar, especially in light of de-dollarization efforts by the BRICS nations.

One way in which cryptocurrency could be used to extend the US dollar's dominance by decades is through collateralized stablecoins, which purchase and hold US debt instruments. This would help to absorb the massive inflation that has been caused by years of reckless fiscal policy, poor monetary policy and quantitive easing.

An example of this is the Tether stablecoin, which held $72.5 billion in US Treasuries in 2023 — an amount that was comparable to the holdings of certain developing nation-states. The company also highlights the fact that it over-collateralizes its dollar-pegged stablecoin as a precaution against a الكبير collapse.

Paul Ryan Highlights Stablecoins' Role in Supporting US Dollar Amid Debt Crisis, Despite Criticism

Another perspective on the matter comes from former Speaker of the House of Representatives Paul Ryan, who spoke about the potential of stablecoins to help with the debt crisis and maintain the US dollar's competitiveness in global trade markets.

According to Ryan, dollar-pegged stablecoins create a substantial demand for the US dollar and US debt instruments, which forms the basis for the value of the fiat-equivalent tokens.

However, some people, such as Human Rights Foundation Chief Strategy Officer Alex Gladstein, believe that dollar-pegged stablecoins are simply perpetuating the dysfunctional fiat-centric system that decentralized digital currencies were supposed to replace.

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