A federal judge in Washington, D.C., has approved a 60-day pause in the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Binance, the world’s largest cryptocurrency exchange. This decision follows a joint request by both Binance and the SEC, citing the possible influence of a newly formed SEC task force on cryptocurrency regulation.
SEC’s Case Against Binance
The SEC sued Binance and its founder, Changpeng Zhao, in June 2023, alleging that the exchange engaged in deceptive practices, including:
- Artificially inflating trading volumes
- Misusing customer funds
- Misleading investors about its security controls
The lawsuit was part of the SEC’s broader crackdown on cryptocurrency exchanges, which intensified under former SEC Chair Gary Gensler’s leadership.
New SEC Task Force and Its Impact
The recent delay in legal proceedings coincides with the creation of an SEC task force focused on cryptocurrency regulation. Established last month, this group is led by Republican Commissioner Hester Peirce, known for advocating pro-crypto policies. Both Binance and the SEC acknowledged that the task force’s efforts could potentially influence the case’s outcome.
In their court filing, both parties agreed that a temporary stay would be beneficial, stating, “The work of this task force may impact and facilitate the potential resolution of this case.”
Shift in U.S. Crypto Regulations Under Trump
This development reflects a broader change in U.S. cryptocurrency policy under President Donald Trump’s administration. Unlike the previous administration’s strict stance, Trump has signaled support for making the U.S. a global leader in cryptocurrency. He recently nominated Paul Atkins, a known crypto advocate, as the new SEC chair, replacing Gensler.
Binance welcomed the pause, reiterating its stance that the SEC’s allegations are baseless. The exchange expressed its commitment to maintaining its position as a secure and trusted platform.
As the 60-day stay unfolds, industry stakeholders will closely watch the SEC’s task force for potential regulatory changes that could reshape the future of cryptocurrency operations in the U.S.
