A U.S. District Court judge has temporarily halted the Securities and Exchange Commission’s (SEC) lawsuit against Binance.
Judge Amy Berman Jackson approved a 60-day stay on Thursday after the SEC and Binance submitted a joint motion earlier this week. The filing cited ongoing regulatory reviews that could impact the case’s outcome.
SEC and Binance agree to pause the case
The delay in the case was caused by regulatory procedures implemented by the SEC. The commission formed a new task force to study cryptocurrency regulations as part of its recent organizational innovations. According to the filing’s review steps, current legal settlements or modifications of existing terms are possible.
Binance protects itself against the lawsuit through accusations of baselessness.
The representative of Binance has expressed commitment to ending court proceedings while maintaining programmer security improvements plus compliance measures at the exchange.
Corey Frayer joined other previous SEC officials in criticizing this choice because they suspected it would reduce regulatory visibility and oversight capabilities in the market. The ongoing lawsuit also caused Frayer concern because it might weaken the SEC’s oversight power over financial institutions.
Background on the SEC’s lawsuit against Binance
Binance, led by Changpeng Zhao, received thirteen legal charges from the SEC during June 2023. The United States Security and Exchange Commission charged Binance with running unlicensed cryptocurrency trading platforms. At the same time, the company led investors astray by misinforming them about protection measures and blocking American users from accessing the Binance exchange.
In November 2023 Zhao accepted guilt to money laundering offenses which resulted in his imprisonment. Despite the SEC’s aggressive stance under previous leadership, the case’s temporary suspension suggests a shift in the commission’s approach to crypto regulation. This change follows the recent restructuring of its enforcement priorities, particularly regarding how cryptocurrency-related cases are handled.
Crypto industry reacts to SEC’s shift in leadership
Cryptocurrency industry members take conflicting views when the SEC supports a stay request. The SEC’s regulatory action is a critical sign demonstrating positive changes in crypto policy regulations during the current leadership period. During a conference, SEC Commissioner Hester Peirce publicly criticized traditional crypto regulatory enforcement approaches because this method works better than creating regulations through official channels.
President Donald Trump has chosen Paul Atkins, who is known to support crypto assets, as his next nominee for SEC chair. Under existing Republican leadership at the agency, they have initiated changes to their procedures even though Paul Atkins has not been confirmed as the next SEC chair. Many in the crypto industry view these developments as a positive step toward regulatory clarity and a more favorable environment for digital assets.