SEC and Binance Agree to Temporary Legal Halt
The United States Securities and Exchange Commission (SEC) and the international cryptocurrency exchange Binance have jointly requested a temporary suspension of their ongoing legal proceedings. This decision comes in light of evolving regulatory developments within the SEC.
SEC and Binance Seek a Two-Month Legal Pause
According to FOX Business reporter Eleanor Terrett, the SEC and Binance have submitted a motion seeking a 60-day halt in their legal battle. The motion, filed on February 10, 2025, suggests that the formation of the SEC’s Crypto Task Force, led by Commissioner Hester Peirce, necessitates this pause. The task force, initiated by acting chair Mark Uyeda, aims to craft a comprehensive regulatory framework for cryptocurrency assets, potentially influencing the resolution of this case.
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In June 2023, the SEC initiated legal action against Binance, accusing the exchange, along with its U.S. counterpart BAM Trading Services Inc., and former CEO Changpeng Zhao, of unlawfully offering unregistered securities within the United States. The regulatory body asserted that Binance’s lack of necessary registration enabled the operation of an unregulated platform, which allegedly subjected American investors to considerable risks and misrepresented the security and regulatory scrutiny of their investments.
In response, Binance sought to dismiss the lawsuit, contending that the SEC overstepped its authority. However, Judge Amy Berman Jackson denied this motion in July 2024. The judge did, however, provide Binance a partial victory by dismissing several of the SEC’s primary allegations. Notably, the court rejected claims concerning the secondary market sales of BNB tokens, the categorization of the Binance USD (BUSD) stablecoin as an investment contract, and the notion that cryptocurrency tokens inherently qualify as securities.
Despite these developments, Judge Jackson allowed the case to continue, focusing on allegations related to Binance’s staking program, the Initial Coin Offering (ICO) sales of BNB, and violations of anti-fraud provisions under the Securities Act.
Anticipation of Further Joint Motions
The court document from Monday indicates that the SEC proposed a brief suspension, which Binance accepted, citing its appropriateness and alignment with judicial efficiency. The joint motion suggests that this pause could conserve resources for both parties if an early settlement is reached, eliminating the need for further discovery proceedings.
This temporary suspension would also optimize the Court’s resources, as a resolution might render the pending motions to dismiss the amended complaint unnecessary. Following the 60-day halt, Binance and the SEC plan to file a joint status report to assess whether an extension of the stay is justified.
Terrett notes that this joint motion marks the first requested pause in crypto litigation since Uyeda assumed the role of acting chair on January 20. She speculates that other non-fraud cases, such as those involving Ripple, Coinbase, and Kraken, may similarly pursue a motion for a stay.
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