- A U.S. judge approved a 60-day stay on the SEC’s lawsuit against Binance.
- Binance settled other cases with the DOJ and CFTC, paying $7.1 billion.
A U.S. judge has placed the Securities and Exchange Commission’s (SEC) lawsuit against Binance on hold for 60 days. Both the SEC and Binance requested the delay, citing potential regulatory changes under a newly formed SEC task force.
On Thursday, U.S. District Judge Amy Berman Jackson approved the joint motion to stay the lawsuit. The SEC and Binance argued that the new SEC task force could influence the case’s resolution. The task force, created last month, is led by Republican Commissioner Hester Peirce, a well-known advocate for cryptocurrency.
Peirce has criticized past SEC enforcement strategies. She believes regulatory policies should be clearer. The agency is now reviewing existing cases, including those that previously classified crypto tokens as securities.
Background of the Binance Case
The SEC filed its lawsuit against Binance and its founder, Changpeng Zhao, in June 2023. The regulator accused the exchange of inflating trading volumes, misusing customer funds, and misleading investors about its compliance measures. Zhao later pled guilty to money laundering charges. He served a four-month prison sentence as part of a separate legal case.
In addition to the SEC’s lawsuit, Binance settled cases with the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC). The exchange paid over $7.1 billion in settlements and agreed to leave the U.S.
Under new leadership, the SEC is adjusting its stance on crypto regulations. President Donald Trump nominated Paul Atkins, a pro-crypto lawyer, as the next SEC chair. His appointment is pending Senate confirmation. Meanwhile, Mark Uyeda is serving as Acting Chair.
The SEC is also scaling down its crypto enforcement division. This move signals a shift away from the aggressive legal actions seen under former Chair Gary Gensler. Some crypto industry leaders welcome this change, seeing it as a more favorable regulatory approach.
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