Judge Grants 60-Day Pause In SEC's Lawsuit Against Binance Amid Regulatory Shift

2025-02-16 04:34:04

(MENAFN- The Arabian Post)

A federal judge in Washington, D.C., has approved a 60-day halt to the U.S. Securities and Exchange Commission's civil lawsuit against Binance, the world's largest Cryptocurrency exchange. This decision follows a joint motion by both parties, aiming to allow time for the SEC's newly established crypto task force to potentially influence the case's resolution.

The lawsuit, initiated by the SEC in June 2023, accuses Binance and its founder, Changpeng Zhao, of multiple violations, including artificially inflating trading volumes, diverting customer funds, and misleading investors about regulatory oversight. These allegations have been a significant point of contention between the regulatory body and the crypto exchange.

The recent establishment of the SEC's crypto task force, led by Commissioner Hester Peirce, known for her supportive stance on digital assets, signifies a potential shift in the agency's approach to cryptocurrency regulation. This development comes under the administration of President Donald Trump, who has expressed intentions to position the United States as a global hub for the crypto industry. The nomination of Paul Atkins, a pro-crypto attorney, as the new SEC chair further underscores this directional change, although his confirmation by Congress is still pending.

In their joint motion, the SEC and Binance highlighted that the task force's work“may impact and facilitate the potential resolution of this case.” They proposed to submit a joint status report at the end of the 60-day period to inform the court about the case's status and the necessity of extending the stay.

This pause in legal proceedings reflects a broader trend within the SEC, as the agency reassesses its regulatory framework concerning digital assets. Under the previous leadership of Gary Gensler, the SEC adopted a stringent stance towards cryptocurrency platforms, leading to multiple lawsuits and enforcement actions. The current shift suggests a more collaborative approach, aiming to develop clear guidelines that balance investor protection with industry innovation.

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Binance has welcomed this development, reiterating its commitment to compliance and regulation. A spokesperson for the company stated,“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.”

Arabian Post – Crypto News Network

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