Binance and SEC Agree to Suspend Lawsuit as Task Force Develops Regulatory Framework
Binance and the US Securities and Exchange Commission (SEC) have jointly requested a 60-day suspension of their legal proceedings. This decision comes as the SEC establishes a new task force dedicated to developing a clear regulatory framework for digital assets. According to the court filing, the work of this team could influence the outcome of the case and facilitate a potential settlement.
“The work of this task force can have an impact and facilitate the potential resolution of this case. As a result, the SEC has proposed to the defendants a brief suspension, and the defendants have agreed that a suspension is appropriate.”
The main defendants in this case remain Binance, its co-founder Changpeng Zhao, and affiliated entities BAM Trading Services and BAM Management US Holdings. After the suspension period is over, the parties will submit a joint report to assess the need for an extension.
A Lawsuit that Has Already Undergone Modifications
Filed in June 2023, the SEC’s complaint against Binance was based on 13 charges, including operating an unregistered exchange platform and violating federal securities laws. However, in June 2024, a federal judge partially dismissed certain allegations, including those regarding the BUSD stablecoin, the Simple Earn program, and the secondary sale of BNB. Despite these setbacks, the majority of the SEC’s charges have been maintained.
Under Gary Gensler’s leadership, the agency had taken an aggressive stance towards the crypto industry, launching similar lawsuits against Ripple, Coinbase, and Kraken. Its approach, often referred to as “regulation by enforcement,” had been widely criticized for its lack of clarity and foresight.
A Turning Point with the SEC’s New Leadership under Trump
The suspension of the Binance case coincides with major changes within the SEC. Following Donald Trump’s re-election, Gary Gensler resigned from his position, making way for leaders who are much more favorable towards the crypto ecosystem. Mark T. Uyeda was appointed interim chairman, while Paul Atkins, known for his pro-crypto stance, was designated to officially head the agency, pending confirmation by the Senate.
The SEC’s restructuring also resulted in a reduction of its cryptocurrency enforcement unit. According to the Wall Street Journal, Jorge Tenreiro, a key figure in the industry’s prosecutions, has been transferred to the agency’s computer department, a clear sign of a change in strategy.
A New Approach to Regulating Digital Assets
With the establishment of the SEC Crypto 2.0 task force, led by Commissioner Hester Peirce, the agency seems to be moving away from the purely punitive approach that marked the Gensler era. The stated objective is to define clear guidelines, develop realistic registration processes for crypto companies, and establish a disclosure framework that suits the sector’s specificities.
This change is being welcomed by Binance. A spokesperson for the exchange stated that they are “grateful to the SEC’s new leadership for their efforts to ensure a legislative and regulatory framework appropriate to digital assets.” They also added that “the SEC’s case never had a solid foundation” and that the company is looking forward to turning the page.
