Binance and the U.S. Securities and Exchange Commission (SEC) have jointly requested a 60-day pause in the SEC’s lawsuit against the crypto exchange. This motion, filed on Monday, comes amid the formation of a new SEC task force aimed at regulating the cryptocurrency industry, which may influence the outcome of the case.
The stay request marks a shift away from the SEC’s aggressive crypto enforcement under previous Democratic leadership. The task force, launched last month, is expected to play a role in shaping regulations that could impact the resolution of ongoing cases, including Binance’s. This development is seen by some as a sign of the SEC’s potential pivot toward a more crypto-friendly stance, aligning with President Donald Trump’s vision to establish the U.S. as a global leader in the crypto space.
The SEC’s ongoing lawsuit, filed in June 2023, accuses Binance and its founder, Changpeng Zhao, of inflating trading volumes, diverting customer funds, and misleading investors regarding market surveillance controls. Binance has consistently denied the charges, claiming the case is without merit. The company is eager to resolve the matter and focus on maintaining its position as a secure and trusted exchange.
While the SEC has declined to comment beyond the court filing, the motion reflects broader changes at the agency, including a shift in leadership priorities under President Trump’s administration. At a Federalist Society event, SEC Commissioner Hester Peirce criticized the previous approach of using enforcement to set policy, suggesting that a new direction was needed.
Some critics, however, view the stay as a sign of the SEC’s shifting stance on crypto. Former SEC official Corey Frayer expressed concern, arguing that delaying the case could signify the agency’s failure to uphold its duties in protecting investors and enforcing securities laws.
Binance’s legal troubles have also included an admission in November 2023 that the exchange violated anti-money laundering laws, with Zhao serving prison time for related charges. Despite these issues, the overall approach to crypto regulation has shifted sharply since President Trump took office, with the administration making efforts to position the U.S. as a more crypto-friendly environment.