Crypto exchange Binance and regulatory agency the United States Securities and Exchange Commission (SEC) have filed a joint motion to pause their ongoing legal tussle for 60 days.
The decision is coming after the acting chairman of the agency, Mark Uyeda, formed a new task force on February 4. According to the court documents released today, both parties believe that the task force could have a great influence on the verdict of the case. “The work of this task force may impact and facilitate the potential resolution of this case,” the motion read.
According to the filing, both parties want to use the 60-day window to assess the work of the task force and determine if litigation can go on after that. Both parties will also be required to submit a joint report after 60 days. According to the filings, the SEC is accusing Binance, its founder Changpeng Zhao, BAM Trading Services Inc., Binance Holdings Ltd., and BAM Management US Holdings Inc. of more than one allegation, including misusing user funds and trading unregistered securities.
How the motion works
According to the motion filed, both sides have determined that the best course of action is to pause the proceedings for 60 days so they can both save resources. The filing also added that the discovery process, where they both exchange resources, may become invalid if they both agree. “A brief stay will promote the efficient use of the court’s resources,” the motion said. This also ensures that the court will not have to waste time on the pending motions filed by Binance and just move straight to a ruling.
If the 60-day break is granted, the court could delay some of its judgment while moving to dismiss the others. The process will also help Binance, which could use the discovery phase to save costs and regroup. Some of the evidence shared includes emails, internal records, and other sensitive materials that could aid the case.
The court documents further explain why both parties decided that it was the best course of action at this time. “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,” the document reads.