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Binance and SEC Request Stay in Crypto Lawsuit Amid New Regulatory Task Force

By  |  February 11, 2025
Binance and SEC Request Stay in Crypto Lawsuit Amid New Regulatory Task Force

Binance and the U.S. Securities and Exchange Commission (SEC) have jointly requested a federal judge to put the regulator’s lawsuit against the cryptocurrency exchange on hold for 60 days, according to a court filing. Per Reuters, the motion, filed late Monday, cites the potential influence of a newly established SEC task force focused on cryptocurrency regulations.

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    The request for a stay marks a notable shift in the SEC’s stance on crypto enforcement under Democratic leadership. As Reuters reported, the regulator’s task force, formed last month, aims to reevaluate the legal landscape for digital assets. The filing suggests that this initiative may “impact and facilitate the potential resolution of this case.”

    If granted, the stay could indicate an early move toward a more crypto-friendly regulatory environment, aligning with President Donald Trump’s stated commitment to making the U.S. a global leader in the industry. Reuters previously noted that the SEC, now under Republican leadership, is reviewing its ongoing legal actions against crypto firms, including Binance. The agency has contended that various crypto tokens function as securities and should be subject to federal oversight.

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    The SEC initiated its lawsuit against Binance, its U.S. subsidiary, and founder Changpeng Zhao in June 2023. The regulator accused the exchange of artificially inflating trading volumes, diverting customer funds, and misleading investors regarding its market surveillance practices. A federal judge ruled last year that most of the SEC’s claims could proceed. Meanwhile, the regulator continues to engage in a legal battle with another major crypto exchange, Coinbase.

    Related: French Prosecutors Open Investigation into Binance

    A Binance spokesperson welcomed the potential resolution, emphasizing the company’s dedication to security and regulatory compliance. “The SEC’s case has always been without merit, and we are eager to put this behind us and to continue our focus on keeping Binance the most secure, licensed, and trusted exchange in the world,” the spokesperson stated, while also expressing gratitude to interim SEC Chair Mark Uyeda. Lawyers representing the SEC did not immediately comment on the matter.

    According to Reuters, SEC Commissioner Hester Peirce, who is leading the newly formed task force, has been critical of the agency’s past approach to crypto regulation. In a statement earlier this month, Peirce remarked, “The Commission’s handling of crypto has been marked by legal imprecision and commercial impracticality… It took us a long time to get into this mess, and it is going to take us some time to get out of it.”

    The regulatory shift comes as Trump appoints Washington lawyer Paul Atkins, known for his pro-crypto stance, as the new SEC chair.

    Source: Reuters