SEC vs. Binance Halted For 60 Days, Parties Await SEC Crypto Task Force

Crypto exchange Binance and the United States Securities and Exchange Commission (SEC) have filed a joint motion to stay the case for 60 days to seek an early resolution in light of recent events. This comes after the formation of a crypto task force under Acting Chair Mark Uyeda, which could result in a final determination. United States digital asset regulation shifted from being pro-lawsuits after Donald Trump’s inauguration.

Parties To Seek Possible Resolution

In a new filing in the US District Court for the District of Columbia, Binance and the financial regulator agreed to pause proceedings for 60 days. The newly formed crypto task force led by “crypto mom” Hester Pierce can impact a resolution based on its powers to regulate the space. 

According to the filing, both parties will submit a report on the status or whether an extension will be required. This eliminates the need for the financial regulator to address Binance’s pending motions. The joint market marks a historical shift in crypto rules in the United States. 

“As this is a joint motion, there is no prejudice to any party here, and a stay could save the Parties resources because, if an early resolution could be reached, it would obviate the need to continue merits discovery.”

In 2023, the SEC filed 13 charges against Binance, alleging that the exchange offered services to unregistered crypto assets. Binance fought the allegations, although the exchange faces other regulatory hurdles globally. Based on the Howey Test, Binance has previously urged the court to dismiss the lawsuit. Last year, Binance and Changpeng Zhao reached a $4 billion settlement with the Commodity Futures Trading Commission (CFTC).

SEC’s Crypto Task Force

The Commission unveiled a crypto tax force in line with Donald Trump’s agenda to create a favorable environment for the industry. The task force’s establishment marks the first policy change of the new administration. The division is tasked with reshaping industry rules, crafting frameworks for crypto disclosures, and deploying resources. 

The task force will kickstart the overhauls as President Trump seeks to position the country as the global Bitcoin capital. Industry leaders have backed the move, citing new market confidence and a clear shift from the Biden administration. For industry watchers, the Gary Gensler-led SEC waged war against crypto, filing countless lawsuits amid uncertain policies.