Binance, SEC Seek 60-Day Stay in Ongoing Lawsuit Amid Regulatory Shift

Binance and the United States Securities and Exchange Commission (SEC) have jointly requested a federal judge to impose a 60-day stay on the ongoing lawsuit initiated by the regulator against the prominent cryptocurrency exchange, Reuters reports.

This motion, filed late on Monday, reflects a potential pivot in the SEC’s approach to cryptocurrency regulation under new leadership.

The joint request cites the formation of a newly established SEC task force, tasked with addressing and developing regulations surrounding the cryptocurrency industry. The parties involved believe that this task force may significantly “impact and facilitate the potential resolution of this case,” suggesting that the regulatory landscape is evolving.

This stay is viewed by some industry observers as an initial indication of the SEC’s shift towards a more crypto-friendly position. Such a change is in line with President Donald Trump’s commitment to positioning the United States as a global hub for the cryptocurrency industry.

Under the previous administration, the SEC had aggressively pursued enforcement actions against various crypto firms, including Binance. The regulator’s accusations against Binance, its US subsidiary, and founder Changpeng Zhao, included claims of artificially inflating trading volumes, misappropriating customer funds, and providing misleading information regarding market surveillance practices.

The SEC initially filed its lawsuit against Binance in June 2023, asserting that the exchange was listing crypto tokens that should be classified as securities. In November 2023, Binance admitted to breaching anti-money laundering laws, leading to Zhao serving a prison sentence related to the charges.

Since Trump’s presidency began, there has been a marked reevaluation of US cryptocurrency policy. The appointment of Paul Atkins, a pro-crypto attorney from Washington, D.C., as the new chair of the SEC is expected to further influence this shift. Although Atkins’s confirmation by Congress is still pending, the SEC has already begun to adjust its priorities, reallocating some enforcement attorneys away from cryptocurrency cases and tightening oversight on existing investigations.