Binance and SEC Move to Halt Case, Seek Early Resolution

What to Know

• The U.S. Securities and Exchange Commission (SEC) and Binance filed a motion to pause their case for 60 days.
• The stay could pave the way for an early resolution and conserve legal resources.
• The SEC’s newly launched Crypto Task Force may play a role in facilitating the case’s resolution.

SEC and Binance Request 60-Day Pause in Legal Battle

The U.S. Securities and Exchange Commission (SEC), Binance, and its former CEO Changpeng Zhao (CZ) have jointly filed a motion to stay their ongoing case for 60 days to explore an early resolution, according to a court filing on Monday. The move aims to save resources and potentially bring the high-profile case to an expedited conclusion.

The lawsuit, which began in 2023, alleges that Binance, BAM Management—the entity operating Binance U.S.—and CZ violated U.S. securities laws. However, with the introduction of the SEC’s Crypto Task Force, the case could take a new direction. Established on January 21 under SEC Acting Chairman Mark T. Uyeda, the task force is designed to assist in developing a clearer regulatory framework for digital assets.

A Changing Landscape for Crypto Regulation

For years, major crypto companies have pushed back against regulation by enforcement, arguing that legal actions stifle innovation. The shift in leadership at the SEC and the departure of former SEC Chair Gary Gensler, who aggressively pursued legal action against crypto firms, signal a potential change in regulatory tactics.

Adding to this shift, President Donald Trump recently issued an executive order calling for crypto-friendly policies, marking a significant departure from the previous administration’s approach. As the industry watches closely, the outcome of this case could set the tone for future regulatory decisions in the U.S.