Binance and SEC seek pause in legal battle amid development of Trump’s crypto policy
The U.S. Securities and Exchange Commission (SEC) and cryptocurrency have been at the center of a recent court filing that requests a 60-day stay on the regulator’s lawsuit against Binance. This move comes in light of a newly established task force and hints at a potential shift in the SEC’s crypto enforcement strategies.
The joint filing by Binance and the SEC highlights the significance of the SEC’s task force, formed with the aim of developing crypto regulations. Both parties expressed that the task force’s activities might influence the outcome of the ongoing lawsuit.
This decision to pause the lawsuit could signal a broader change in the SEC’s approach to cryptocurrencies. With the promise made by President Donald Trump to position the U.S. as a prominent player in the global crypto industry, the SEC seems to be moving towards a more crypto-friendly stance under Republican leadership.
An earlier report by Reuters indicated that the SEC, now operating under Republican governance, was poised to review current legal battles involving companies like Binance. These cases revolve around allegations that these firms are listing crypto tokens that mimic securities, sparking regulatory scrutiny.
In June 2023, the SEC initiated legal action against Binance, its U.S. division, and founder Changpeng Zhao, accusing them of inflating trading volumes, misappropriating customer funds, and providing misleading information about their market monitoring systems. A federal judge had previously ruled that much of the lawsuit could proceed. Additionally, the SEC is entangled in a separate conflict with another crypto exchange, Coinbase.
A Binance spokesperson dismissed the SEC’s claims, asserting their commitment to making Binance a secure and reputable exchange. Mark Uyeda, who currently chairs the SEC on an interim basis, was acknowledged by the spokesperson for his role in this matter.
Hester Peirce, the SEC Commissioner leading the task force, criticized the SEC’s historical approach to crypto, citing legal ambiguities and practical challenges. She emphasized that rectifying this situation would not happen overnight.
Paul Atkins, a Washington attorney known for his pro-crypto views, was selected by Trump to head the SEC. Notably, members of the Republican party have intensified their efforts to counter what they perceive as a financial crackdown on crypto companies. Although Atkins awaits confirmation by Congress, the SEC has already started realigning its focus under the current Republican administration, including reassigning some crypto enforcement staff and tightening oversight protocols.
The recent alterations within the SEC, combined with efforts to encourage federal workers to exit their roles, have generated unease among employees. This series of changes reflects a potential shift in the regulatory landscape.
