SEC and Binance Push for Another Pause in Lawsuit After ‘Productive’ Talks

SEC and Binance Request Another 60-Day Pause in Lawsuit Amid Ongoing Settlement Talks

The U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Binance are seeking an additional two-month pause in their nearly two-year legal battle, according to a joint status report filed on April 11 with the U.S. District Court for the District of Columbia.

The filing states that both parties have engaged in “productive discussions,” including conversations regarding the influence of the SEC’s newly formed Crypto Task Force on the direction of the case. The task force, established on January 21 — just a day after the resignation of former SEC Chair Gary Gensler — aims to clarify regulatory boundaries for the crypto industry and recommend enforcement priorities.

The SEC initiated the request for the 60-day extension, with Binance agreeing that continuing the stay would serve the interests of judicial economy. If granted, this will be the second such pause in 2024, following a similar extension approved by the court on February 11.

The recently launched crypto task force was a key reason behind the request for the second extension. Source: CourtListener

“At the end of the stay, the Parties anticipate submitting a further joint status report,” the filing said, signaling that negotiations are ongoing and could potentially lead to a resolution or a narrowing of the litigation’s scope.

The legal case dates back to June 2023, when the SEC filed 13 charges against Binance, its U.S. affiliate, and CEO Changpeng “CZ” Zhao. The charges include allegations of unregistered offerings and sales of BNB and Binance USD tokens, as well as violations involving Binance’s staking program, BNB Vault, and Simple Earn products.

This latest development comes on the heels of the SEC quietly backing off from other high-profile crypto lawsuits involving Coinbase, Kraken, Gemini, Robinhood, and ConsenSys. These moves, along with the leadership shift to acting Chair Mark Uyeda, a more crypto-friendly commissioner, suggest a potentially evolving regulatory stance.

With the Crypto Task Force actively shaping internal policy and enforcement strategies, the SEC’s approach toward the crypto industry appears to be in transition. Whether this results in a settlement or significant narrowing of the Binance case remains to be seen when the two parties return with their next status update in 60 days.