The U.S. Securities and Exchange Commission (SEC) and Binance have jointly moved for a 60-day stay in their case.
The request, filed on Feb. 10, seeks to temporarily halt proceedings while regulatory developments unfold, particularly the establishment of the SEC's new Crypto Task Force.
The SEC filed a lawsuit against Binance, its U.S. affiliate BAM Trading Services, BAM Management US Holdings, and former CEO Changpeng "CZ" Zhao in June 2023, alleging that Binance violated U.S. securities laws by operating as an unregistered exchange.
The SEC accused the company of misleading investors, commingling customer funds, and failing to register properly as a securities exchange. Binance has denied any wrongdoing, arguing that the SEC lacks the legal framework to regulate digital assets effectively.
Why the 60-day stay?
According to the motion, the newly appointed SEC Acting Chairman, Mark T. Uyeda, has launched a Crypto Task Force to develop a clearer regulatory framework for digital assets.
The motion states, "The work of this task force may impact and facilitate the potential resolution of this case."
Given the potential regulatory shifts, both Binance and the SEC believe a temporary stay is in the best interest of all parties involved.
The SEC's motion acknowledges, "A stay could save the parties resources because, if an early resolution could be reached, it would obviate the need to continue merits discovery."
Additionally, the stay would allow the court to delay ruling on Binance's pending motions to dismiss the SEC's lawsuit.
What happens after 60 days?
After the 60 days, the parties will submit a joint status report outlining whether the case should resume, or if an additional stay is warranted.
"We are grateful to Interim Chairman Uyeda for his thoughtful approach to ensuring digital assets receive the appropriate legislative and regulatory focus in this new, golden era of blockchain in the U.S. and around the world," said a Binance spokesperson in a statement shared with TheStreet Crypto. "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."
