The SEC and Binance requested a 60-day pause in their legal battle, citing new regulatory initiatives and reassessment needs.
Acting SEC Chairman Mark Uyeda halted a crypto lawsuit for the first time, signaling a potential shift in enforcement strategy.
With Ripple, Coinbase, and Kraken also facing SEC lawsuits, speculation rises on whether they will seek similar litigation pauses.
On February 11, Fox Business reporter Eleanor Terrett that the US Securities and Exchange Commission () and jointly requested a 60-day suspension of their legal battle. The motion, filed in the US District Court for the District of Columbia on February 10, seeks to reassess the case in response to new regulatory initiatives. Court approval would delay proceedings for two months, potentially influencing legal strategies for other crypto firms facing regulatory challenges.
🚨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
🚨NEW: Here’s the first requested pause on litigation in the courts since took over as acting chair. and the 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…
For the first time under acting SEC Chairman Mark Uyeda, a cryptocurrency lawsuit faces a temporary halt. Uyeda has introduced significant changes to the commission’s approach to digital asset regulation. The decision follows the SEC’s recent launch of a crypto regulatory task force, indicating a possible shift in enforcement policy.
A court filing states that the task force “may impact and facilitate the potential resolution of this case”, strengthening speculation that regulatory updates could reshape other major crypto lawsuits.
“We are grateful to Interim Chairman Uyeda for his thoughtful approach to ensuring digital assets receive the appropriate legislative and regulatory focus in this new, golden era of blockchain in the US and around the world. The SEC’s case has always been without merit and we are eager to put this behind us and to continue our focus on keeping Binance the most secure, licensed, and trusted exchange in the world,” a Binance spokesperson stated.
SEC Launches Crypto Task Force Under Peirce
On January 21, the SEC the Crypto Task Force under Commissioner Hester Peirce, a strong proponent of clearer crypto regulations. The agency aims to shift from aggressive enforcement toward proactive policymaking. By tackling long-standing regulatory uncertainty, the SEC seeks to establish guidelines that balance innovation with investor protection.
The task force’s formation coincides with Binance’s latest legal response. Binance and former CEO Changpeng Zhao (CZ) challenged the SEC’s allegations by filing a motion to dismiss the lawsuit in January. They argued that regulators failed to prove Binance violated securities laws, particularly under the Howey Test.
The SEC initially accused Binance of operating as an unregistered securities exchange, broker, and clearing agency. Officials also alleged the company misled investors about risk controls and engaged in fraudulent trading. Regulators further claimed Binance promoted unregistered securities, including its native token BNB , along with assets like SOL and ADA .
However, in June 2024, a federal judge the SEC’s argument regarding secondary-market BNB sales, delivering an early setback for the case.
Ripple, Coinbase, and Kraken to Follow the Suite
The legal environment for crypto firms remains challenging as Coinbase and Ripple face SEC actions. Eleanor Terrett also hinted that companies such as Ripple, , and , all entangled in legal disputes with the SEC, may now consider requesting similar litigation pauses as Binance.
Coinbase, similar to Binance, confronts charges for operating an unregistered securities exchange while the SEC scrutinizes its staking program. Exchange officials deny wrongdoing and argue that the SEC failed to establish clear rules between investment contracts and commodities such as Bitcoin and Ethereum .
Ripple endures protracted litigation at the Court of Appeals for Second Circuit over XRP classification as a security. After partial success in July 2023 when a judge ruled retail XRP sales fall outside security criteria, SEC swiftly appealed the decision, thereby extending legal uncertainty.