Binance and the U.S. Securities and Exchange Commission (SEC) have requested a 60-day stay on the lawsuit filed by the regulator against the crypto exchange, citing the potential impact of a newly established task force focused on crypto regulations. In a court filing submitted on Monday, both parties acknowledged that the task force, created last month to address crypto industry concerns, may play a crucial role in potentially resolving the ongoing case.
This stay request comes as a significant development, potentially signalling the SEC’s shift towards a more crypto-friendly approach. Such a move aligns with President Donald Trump’s objective to position the U.S. as a global hub for the cryptocurrency industry, contrasting with the stance of former SEC Chair Gary Gensler, who had labelled the sector as “the Wild West.” Under Gensler, the SEC filed a lawsuit against Binance in June 2023, accusing the exchange and its former CEO Changpeng Zhao of manipulating trading volumes, misappropriating customer funds, and misleading investors about its market surveillance measures.
Despite the charges, a federal judge ruled that most of the lawsuit could proceed. The SEC is also engaged in a separate legal battle with another major crypto exchange, Coinbase.
SEC Commissioner Hester Peirce, who is leading the new crypto task force, has previously criticised the commission’s handling of the sector, calling it marked by “legal imprecision and commercial impracticality.” Peirce also noted that resolving the issues surrounding crypto regulation would be a lengthy process.
With the recent appointment of crypto-friendly lawyer Paul Atkins as SEC chair and growing support from prominent Republicans, there has been increased focus on curbing what some critics refer to as “Operation Chokepoint 2.0,” a term used to describe efforts to limit financial services for crypto companies.
