The U.S. Securities and Exchange Commission (SEC) and Binance filed a joint motion on February 10, 2025, to pause their legal proceedings for 60 days.
This is the first time a crypto-related lawsuit has been temporarily halted since Mark Uyeda became the acting SEC chair.
Binance Legal Proceedings on Hold Due to SEC’s Crypto Task Force
The “60-Day Pause” motion was submitted to the U.S. District Court for the District of Columbia, with both parties citing the SEC’s recently established crypto task force as a key factor in their decision.
According to the filing, the task force’s work “may impact and facilitate the potential resolution of this case,” necessitating a temporary halt in legal actions.
INTEL: Binance and SEC request 60-day pause, signaling a possible settlement.
Ripple, Coinbase, and Kraken may follow pic.twitter.com/yyG3lsLLkn— Solid Intel
(@solidintel_x) February 11, 2025
During this period, no new filings or legal motions will take place.
At the end of the 60-day timeframe, Binance and the SEC will submit a joint status report to determine whether the case should continue or if an extension of the pause is warranted.
Notably, Binance has acknowledged the move and values Acting Chair Uyeda’s efforts to address digital asset regulations. It is committed to resolving the case while maintaining compliance as a secure and licensed exchange.
This decision follows the SEC’s announcement on January 21 about forming a Crypto Task Force led by Commissioner Hester Peirce, a popular advocate for crypto-friendly regulations.
The task force plans to shift the SEC’s stance from an enforcement-heavy approach to proactive policymaking, focusing on providing regulatory clarity.
Background on SEC’s Lawsuit Against Binance And Implications for Broader Crypto Regulations
The SEC’s legal battle with Binance began on June 5, 2023, when the regulator sued Binance, its U.S. affiliate Binance.US, and founder Changpeng Zhao (CZ) for allegedly violating U.S. securities laws.
The lawsuit accused Binance of operating as an unregistered securities exchange, misleading investors about trading controls, and misusing customer funds.
Additionally, Binance was sued for promoting unregistered securities, including its native token, Binance Coin (BNB), and other cryptocurrencies like Solana (SOL) and Cardano (ADA).
In a victory for the industry, a US federal court dismissed several #SEC claims against #Binance, ruling that:
1) Crypto tokens are not securities,
2) BNB sales on secondary exchanges were not adequately alleged to be securities,
3) BUSD is not a security.Read more
…
— Binance (@binance) July 2, 2024
However, a federal judge dismissed the SEC’s argument that BNB sales to retail investors constituted securities in June 2024.
Binance has continued to fight the allegations, despite CZ serving a term in prison last year.
Binance’s legal pause aligns with the SEC’s ongoing enforcement actions against other crypto firms.
Coinbase, for instance, faces similar charges related to the unregistered sale of securities through its staking program.
Meanwhile, Ripple remains embroiled in its lengthy legal battle over the classification of XRP.
The case is now advancing to the Court of Appeals for the Second Circuit after the SEC appealed a 2023 ruling.
NEW: Here’s the first requested pause on #crypto litigation in the courts since @MarkUyedaUS took over as acting chair. @binance and the @SECGov have just filed a joint motion to stay the agency’s case against the exchange for 60 days, citing the new SEC crypto task force as… pic.twitter.com/D2zcolMNC5
— Eleanor Terrett (@EleanorTerrett) February 11, 2025
Fox Business journalist Eleanor Terrett speculates that procedural pauses may also occur in non-fraud-related crypto cases involving entities such as Ripple, Coinbase, and Kraken as regulatory shifts take effect.
Last week, the SEC’s Crypto Task Force launched an official webpage to clarify how securities laws apply to digital assets.
The task force is working to introduce practical policy measures that foster innovation while ensuring investor protection.
It also plans to collaborate with SEC staff and engage with the public to shape new crypto regulations.
As the 60-day pause unfolds, market observers will watch closely to see whether these regulatory shifts signal a more constructive approach to crypto oversight.
The outcome of Binance’s case could influence how the SEC and other agencies move forward in balancing innovation with investor protection.
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