- Binance and the SEC requested a 60-day pause on their legal case due to a new crypto task force.
- The SEC’s leadership shift under President Trump may signal a friendlier stance toward crypto.
- Some SEC crypto enforcement lawyers have been reassigned, reflecting internal policy changes.
In a surprising twist, Binance and the U.S. Securities and Exchange Commission (SEC) have jointly requested that a federal judge pause the regulator’s lawsuit against the crypto exchange. According to a recent court filing, both parties believe the formation of a new SEC task force on crypto could influence the case’s outcome. The proposed stay, set to last 60 days if approved, signals a potential softening of the SEC’s once-tough stance on crypto enforcement.
The motion, submitted late Monday, hints that the task force—established last month—might help “facilitate a resolution” for this ongoing legal battle. Industry watchers are speculating that this could mark a shift toward a more crypto-friendly approach, aligning with President Donald Trump’s promise to turn the U.S. into a global crypto hub.
A Legal Battle with Binance and Beyond
The SEC initially sued Binance, its U.S. affiliate, and CEO Changpeng Zhao in June 2023. The lawsuit accused them of inflating trading volumes, misusing customer funds, and misleading investors about market surveillance. A federal judge allowed most of the case to move forward last year.
Meanwhile, the SEC is also entangled in a legal conflict with Coinbase, another major player in the crypto space. These cases have been seen as defining moments for crypto regulation in the U.S. However, the formation of this new task force could signal a change of direction, with some believing the agency is now under pressure to ease up on crypto enforcement.
Binance, in response to the proposed stay, expressed optimism. “The SEC’s case has always lacked merit. We’re eager to move past this and remain focused on making Binance the world’s most secure and trusted crypto exchange,” said a company spokesperson. The spokesperson also thanked interim SEC Chair Mark Uyeda for his role in facilitating the process.
The SEC’s Internal Shifts
The leadership shake-up at the SEC is a big part of this story. Trump has tapped Paul Atkins, a pro-crypto Washington lawyer, to lead the agency. Atkins hasn’t been confirmed by Congress yet, but the SEC is already pivoting under Republican control. Enforcement priorities are being reassessed, with some lawyers previously focused on crypto cases being reassigned to other departments.
At the same time, an initiative aimed at encouraging federal employees to voluntarily leave their positions has sparked anxiety among SEC staff. Commissioner Hester Peirce, who heads the new task force, acknowledged the agency’s struggles with crypto policy: “The Commission’s handling of crypto has been marked by legal imprecision and commercial impracticality. It took us a long time to get into this mess, and it will take time to get out.”
With these shifts underway, many in the industry are hopeful for clearer, more supportive regulatory policies. Still, it remains to be seen if this stay is a genuine sign of change—or just a temporary pause.
