Binance and US Securities and Exchange Commission have requested that a federal court halt the ongoing lawsuit by the regulator against the crypto exchange. They cited the potential impact of the newly formed taskforce focused on digital asset regulations.
The motion could signal a shift in the SEC’s enforcement approach towards crypto under the Trump administration.
A 60-day stay – a sign that change is in the air?
The motion to request an extension of 60 days marks the SEC’s first attempt to retreat from its previous crypto enforcement under Democratic Leadership.
In a joint filing late Monday, both parties stated that the SEC task force, which was formed last month to focus on crypto regulations, could “impact and facilitate a potential resolution of this matter”.
Some have interpreted the stay as an early indicator of the SEC’s move towards a more crypto friendly stance, aligning itself with President Trump’s declared goal of making the US the global hub for cryptocurrency industry.
Reuters reported that the SEC under Republican leadership was expected to review existing court cases, such as those against Binance. The regulator has argued that the firms are listing crypto-tokens which behave like securities.
A spokesperson for the agency refused to comment beyond the filing in court, maintaining a cautious approach with the public.
Hester Peirce, Commissioner of Hester Peirce, hints at a policy shift
At a Federalist Society meeting on Tuesday, Republican commissioner Hester Peirce gave a glimpse of the evolving perspective of the agency: “We have been approaching it backwards by using our enforcement division as a policy-setting tool,” she said, suggesting a shift toward a proactive and comprehensive regulatory framework.
The Binance lawsuit
The SEC first sued Binance and its US unit in June 2023. They accused them of artificially inflating trade volumes, diverting funds from customers, and misleading investors regarding its market surveillance controls.
“The SEC case was always without merit, and we are eager for this to be behind us, and to continue to focus on Binance being the most secure, licensed, and trusted exchange in world,” said a Binance spokesperson, while thanking Mark Uyeda, acting SEC chair.
Former SEC official Corey Frayer expressed concerns about the impact of the motion to stay on investor protection.
“Delaying a matter where the CEO pled to criminal charges, and the SEC had an employee dead to right admitting violation of securities laws clarifies SEC’s shifts in crypto,” he told Reuters.
This post Binance and US regulators seek a legal pause while Trump’s crypto-agenda unfolds may be updated as new information becomes available
