Legal Dispute Stay between Binance and SEC

A Washington D.C. district judge has allowed Binance and the U.S. Securities and Exchange Commission (SEC) to stay their legal dispute for the next 60 days.

Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia ordered the case to be stayed and also requested both parties to file a joint status report by April 14. This decision follows a court filing by Binance and the SEC on Monday, where they asked for a pause in the case, citing the SEC’s new crypto task force aimed at developing a clear regulatory framework for cryptocurrencies.

New SEC Acting Chair Mark Uyeda appointed fellow Republican Commissioner Hester Peirce to lead this crypto task force in late January. Peirce recently outlined priorities for the task force, including the classification of certain tokens as “non-securities.”

The SEC’s approach towards regulation under the Trump administration has differed significantly from the previous administration. Former Chair Gary Gensler had a cautious stance towards crypto, frequently urging crypto firms to register. During his tenure, the SEC filed multiple lawsuits against firms, including Binance, over registration issues.

In 2023, the SEC sued Binance for operating without registration and allegedly misrepresenting trading controls. This year, Binance and former CEO Changpeng Zhao admitted guilt regarding Bank Secrecy Act violations and agreed to pay over $4 billion to settle a Justice Department investigation.

Additionally, in 2023, the SEC also sued Coinbase for operating unlawfully as a broker, exchange, and clearing agency. Coinbase appealed in April, asserting substantial grounds for reconsideration; the New York judge allowed its appeal, with the SEC expected to respond soon.