Binance and SEC Request 60-Day Pause in Legal Case Amid Regulatory Review
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The U.S. Securities and Exchange Commission (SEC) and Binance have jointly requested a 60-day pause in their ongoing legal battle.
A court filing submitted on Monday states that both parties have agreed to temporarily halt proceedings while the SEC’s new task force works on establishing a clearer regulatory framework for cryptocurrencies.
According to the filing, the task force’s work may influence the resolution of the case, and a stay would allow both sides to assess any regulatory changes before proceeding.
— CZ
BNB (@cz_binance) February 11, 2025
Case Background and Partial Dismissal of Charges
The SEC first filed its complaint against Binance in June 2023, accusing the exchange and its affiliates—including co-founder Changpeng Zhao, BAM Trading Services, and BAM Management US Holdings—of operating unregistered exchanges, broker-dealers, and clearing agencies.
While the case moved forward, a federal judge in June 2024 dismissed some of the SEC’s charges, particularly those related to Binance’s BUSD stablecoin, Simple Earn programs, and secondary sales of BNB. However, a significant portion of the SEC’s claims against Binance remains intact.
Regulatory Uncertainty and Industry Pushback
The SEC, under former Chair Gary Gensler, aggressively pursued legal action against major crypto firms, including Ripple, Coinbase, and Kraken, making similar allegations of securities law violations.
These enforcement actions have drawn criticism from industry leaders and legal experts, who argue that the SEC has failed to provide clear regulatory guidance on which cryptocurrency services and offerings may violate federal securities laws.
The request for a stay suggests that a shift in regulatory approach may be underway, particularly following Gensler’s departure and the Trump administration’s more crypto-friendly stance.
What Comes Next?
At the end of the 60-day pause, Binance and the SEC will submit a joint status report to determine whether further delays are necessary. The outcome of the task force’s work could influence the direction of this case and other regulatory actions against crypto firms.
With the SEC now reconsidering its stance on crypto regulation, this case could set a precedent for how future disputes between regulators and crypto platforms are handled.
