The long-running legal battle between Binance and the U.S. Securities and Exchange Commission (SEC) has taken an unexpected turn, as both parties have requested a 60-day pause in the case. This move follows the formation of a new SEC crypto task force, which may influence the case’s outcome and broader regulatory strategies.
🚨NEW: Here’s the first requested pause on #crypto litigation in the courts since @MarkUyedaUS took over as acting chair. @binance and the @SECGov have just filed a joint motion to stay the agency’s case against the exchange for 60 days, citing the new SEC crypto task force as… pic.twitter.com/D2zcolMNC5
— Eleanor Terrett (@EleanorTerrett) February 11, 2025
Fox Business journalist Eleanor Terrett broke the news, highlighting that this is the first time a lawsuit has been paused under the leadership of SEC Acting Chair Mark Uyeda. She emphasized that the newly formed task force could play a crucial role in resolving the case. “The work of this task force may impact and facilitate the potential resolution of this case,” Terrett stated. Binance and the SEC plan to issue a status report after the 60-day period, assessing whether further extensions are necessary.
This development marks a significant shift in the SEC’s approach toward cryptocurrency firms. Analysts predict that non-fraud cases involving Ripple, Coinbase, and Kraken could also follow suit, potentially leading to a more cooperative regulatory landscape. Binance and its founder, Changpeng Zhao (CZ), previously sought to dismiss the lawsuit, arguing that the SEC had failed to prove their allegations met the Howey Test criteria.
The crypto industry has long criticized the SEC’s enforcement-first approach, which many believe has stifled innovation and created unnecessary regulatory hurdles. Acting Chairman Uyeda acknowledged these concerns, suggesting a pivot toward a more balanced regulatory framework. He noted that previous SEC officials relied heavily on enforcement actions, which fostered a hostile environment for crypto businesses. Uyeda’s statements signal a potential shift towards a more crypto-friendly approach that encourages industry growth while maintaining regulatory oversight.
Also Read: XRP Traders Go Bullish: 73% Long on Binance as $12.5M Outflows Signal Accumulation
With the SEC seemingly reassessing its stance, industry experts speculate that high-profile cases, including those involving XRP, may soon see positive resolutions. The next 60 days could set a new precedent for crypto regulation in the U.S., potentially easing legal uncertainties for major players in the sector.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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