A U.S. district judge has granted a 60-day pause in the ongoing legal battle between global crypto exchange Binance and the U.S. Securities and Exchange Commission, allowing both parties time to assess new regulatory developments.
Judge Amy Berman Jackson of the District Court of Columbia ruled on Thursday that both parties would benefit from a temporary stay, which will last until April 14, 2025, at which point they must submit a joint status report.
The joint request for a delay was filed on Monday, with both Binance and the SEC citing the establishment of a new SEC crypto task force as the primary reason, as they believe this shift could “impact and facilitate the resolution of the case.”
Led by SEC Commissioner Hester Peirce, the task force is focused on crafting clearer regulatory guidelines for the crypto market, which has been under increasing legal scrutiny under former chair Gary Gensler.
What the SEC’s Truce With Binance Means for Coinbase and Other Crypto Lawsuits
The SEC has agreed to suspend its lawsuit against Binance, the world’s largest cryptocurrency exchange by volume, in a move that some legal experts say signals a momentous shift in regulatory policy towards crypto companies in the United States. Binance and the SEC jointly filed a motion earlier this week to grant a 60-day pause to the years-long lawsuit, which initially accused Binance of “blatant disregard” of federal securities laws and willful disregard of investor protections, anticipating...
The 60-day stay gives Binance and the SEC a break from immediate legal proceedings, including motions such as Binance’s request to dismiss the SEC’s amended complaint.
The SEC’s stance, traditionally aggressive under Gensler, has been widely criticized for its lack of clear guidelines, leaving many in the crypto industry in limbo for many years.
However, with Peirce at the helm of the task force, there is hope from crypto pundits, the regulatory environment will become more transparent and favorable.
Binance has been under the SEC’s scrutiny since 2023 for its alleged violations of U.S. securities laws, and the pause comes after years of facing probes from multiple regulatory agencies.
This includes a $4.3 billion settlement with the U.S. Department of Justice and a $2.7 Billion settlement with the Commodity Futures Trading Commission over money laundering and sanctions compliance violations.
Binance's $1.5 Billion Fine Accounted for Almost All of DOJ's Record-Setting 2024
The U.S. Attorney’s Office for the Western District of Washington raked in a record $1.51 billion in fines for 2024, with global crypto exchange Binance coughing up $1.5 billion of that—a hefty price tag for one of the district's biggest legal payouts. The large sum is part of an even larger $4.3 billion penalty imposed on Binance for major infractions including failing to register as a money transmitting business and violating U.S. sanctions. The district worked with the Criminal Division’s Mon...
Binance founder Changpeng Zhao also resigned as CEO under the terms of the settlement and was sentenced to four months in prison.
Coinbase, which faced SEC charges for securities violations in June 2023, succeeded in getting a federal judge to pause its lawsuit pending an appeals court ruling.
Ripple too, could take a cue from Binance and adopt a wait-and-see approach in hopes of securing a more favorable regulatory outcome.
Edited by Sebastian Sinclair
