SEC and Binance Request 60-Day Suspension of Legal Battle
On February 10, the SEC and Binance requested a 60-day suspension of their legal proceedings in the US District Court for the District of Columbia. This motion aims to reassess the case following new regulatory initiatives. Approval would delay proceedings for two months and could affect legal strategies for other crypto firms.
This marks the first pause in cryptocurrency litigation since Mark Uyeda became acting SEC Chairman. The SEC has launched a crypto regulatory task force under Commissioner Hester Peirce, shifting its approach from aggressive enforcement to proactive policymaking, aiming to clarify regulations and balance innovation with investor protection.
The SEC accused Binance of operating as an unregistered securities exchange and misleading investors about risk controls. In June 2024, a federal judge dismissed parts of the SEC's case regarding secondary-market BNB sales.
Other crypto firms, including Ripple, Coinbase, and Kraken, may consider similar pauses in their ongoing legal battles with the SEC. Coinbase is facing charges for operating an unregistered securities exchange, while Ripple is involved in litigation concerning XRP's classification as a security.