Binance and US SEC File Motion to Stay Lawsuit Amidst New Crypto Task Force Formation
In a recent court filing, Binance and the U.S. Securities and Exchange Commission (SEC) have jointly requested a stay in the ongoing lawsuit filed by the regulatory agency against the crypto exchange. The filing cites the potential impact of a newly established task force focused on crypto regulations.
The 60-day stay requires the court's approval and marks a shift from the SEC's previous enforcement approach under Democratic leadership. The motion filed on Monday suggests that the SEC's task force, formed in March, may "impact and facilitate the potential resolution of this case."
This stay request could signal the SEC's move towards a more crypto-friendly stance, aligning with President Donald Trump's goal to establish the U.S. as a global hub for the industry. As Reuters reported earlier, the SEC under Republican leadership was expected to review existing court cases against crypto firms, arguing that they offer security-like tokens.
Binance, its U.S. unit, and founder Changpeng Zhao were sued by the SEC in June 2023. The lawsuit alleged that the company artificially inflated trading volumes, diverted customer funds, and misled investors about its market surveillance controls. A federal judge last year allowed the majority of the lawsuit to proceed.
A Binance spokesperson expressed confidence in the lawsuit's lack of merit and thanked interim SEC Chair Mark Uyeda. Lawyers for the SEC did not immediately respond to requests for comment.
"The Commission's handling of crypto has been marked by legal imprecision and commercial impracticality," stated SEC Commissioner Hester Peirce, who heads the task force. "It took us a long time to get into this mess, and it is going to take us some time to get out of it."
The appointment of crypto-friendly lawyer Paul Atkins as the new SEC chair and efforts by Republicans to curb alleged financial restrictions on crypto companies suggest that the SEC is undergoing a shift in priorities. Under the existing Republican leadership, the SEC has reassigned some enforcement lawyers and increased oversight of investigations.