The US Securities and Exchange Commission (SEC) and global crypto exchange Binance have filed a joint motion to halt the ongoing legal battle for two months, citing the ongoing changes in the regulatory agency.
SEC Vs Binance To Take A Pause
On Tuesday, FOX Business journalist Eleanor Terrett reported that the US SEC and Binance had requested a 60-day pause on the regulator’s case against the global crypto exchange. The joint motion, dated February 10, 2025, argues that the litigation warrants a stay due to the creation of the SEC’s Crypto Task Force, led by SEC Commissioner Hester Peirce.
The two parties consider that the Task Force, created by the Commission’s acting chair, Mark Uyeda, to help develop a regulatory framework for crypto assets, could “impact and facilitate the potential resolution of this case.”
In June 2023, the SEC filed a lawsuit against the crypto exchange, arguing that Binance, its US affiliate, BAM Trading Services Inc., and the exchange’s former CEO, Changpeng Zhao, offered the sale of unregistered securities and had operated illegally in the US.
The US watchdog argued that the lack of registration enabled Binance to allegedly run an unregulated trading platform that exposed US investors to significant risks and misled customers about the security and regulatory oversight of their assets.
The exchange filed a motion to dismiss the lawsuit, alleging that the SEC had exceeded its legal authority, but Judge Amy Berman Jackson ruled against the motion in July 2024. Nonetheless, the judge granted Binance a partial victory after rejecting some of the Commission’s main claims.
The court ruling dismissed the claims related to the secondary market sales of BNB tokens, the classification of Binance USD (BUSD) stablecoin as an investment contract, and “the assertion that crypto tokens themselves are securities.”
Despite this, Judge Jackson allowed the case to proceed with claims about the exchange’s staking program, BNB’s Initial Coin Offering (ICO) sales, and anti-fraud violations of the Securities Act.
More Joint Motions To Come?
According to the Monday court document, the regulatory agency proposed a brief stay with Binance, which the crypto exchange agreed to, considering it “appropriate and in the interest of judicial economy.”
Moreover, the joint motion affirms the stay could “save the parties resources” if an early resolution is reached, removing the need to continue the merits discovery.
Further, this brief stay will promote the efficient use of the Court’s resources, as a resolution would obviate the need for the Court to resolve the Defendants’ pending Motions to Dismiss the Amended Complaint.
Following the 60-day stay, Binance and the SEC plan to submit a joint status report, including whether a continuation of the stay is warranted.
Terret alleges that the joint stay motion is the first requested pause on crypto litigation in the courts since Uyeda became acting chair on January 20. The journalist added that she expects to see other non-fraud causes, such as Ripple, Coinbase, and Kraken, follow suit and request a motion stay.
