US SEC Case Against Binance Paused as Crypto Task Force Reviews Rules

A U.S. federal judge has paused the Securities and Exchange Commission’s (SEC) lawsuit against Binance for 60 days. The decision follows a joint request from both the SEC and Binance, citing the establishment of a new task force to review cryptocurrency regulations.

Judge Grants 60-Day Pause in Binance Case

U.S. District Judge Amy Berman Jackson has approved the request to put the case on hold. The order was issued after both parties stated that the new SEC task force may influence the resolution of the lawsuit.

The SEC sued Binance and its founder, Changpeng Zhao, in June 2023. The regulator alleged that Binance inflated trading volumes, diverted customer funds, and misled investors about its compliance measures. Zhao later pleaded guilty to separate criminal charges and stepped down as CEO.

The judge also ordered the SEC and Binance to submit a joint status report by April 14. The report will help determine whether the pause should continue or if legal proceedings should resume.

New SEC Task Force to Review Crypto Regulations

The SEC recently formed a task force to reassess its regulatory approach toward cryptocurrency firms. The task force, led by Republican Commissioner Hester Peirce, will examine past enforcement actions and consider potential adjustments to regulatory policies.

Peirce has been a vocal supporter of cryptocurrency and has criticized the SEC’s previous regulatory stance. In a past statement, she emphasized the need for clearer guidelines instead of enforcement-driven regulation.

According to the SEC’s filing, “The work of this task force may impact and facilitate the potential resolution of this case.” The agency’s shift in approach follows growing concerns from lawmakers and industry participants about the regulatory environment for digital assets.

Changes in SEC Leadership May Influence Crypto Policies

President Donald Trump has nominated Paul Atkins to replace Gary Gensler as SEC chair. Atkins, a lawyer known for his support of financial innovation, is expected to take a different approach to crypto regulation.

Gensler, who led the SEC since 2021, pushed for stricter oversight of cryptocurrency markets. He described the industry as the “Wild West” and pursued enforcement actions against several exchanges, including Binance, Coinbase, and Kraken.

If confirmed, Atkins may steer the SEC toward a more industry-friendly regulatory framework. This shift aligns with Trump’s pledge to make the U.S. a global hub for cryptocurrency.

Potential Impact on Other Crypto Lawsuits

The pause in Binance’s case is the first court-approved delay in a crypto-related lawsuit since Mark Uyeda became acting SEC chair.

Analysts suggest that other non-fraud cases, such as those involving Coinbase, Ripple, and Kraken, may also see similar pauses.

Earlier this month, Lejilex and the Crypto Freedom Alliance of Texas requested a delay in their legal battle with the SEC. They argued that changes in leadership and the new task force could influence their case especially with the court  expected to rule on their request by April 11.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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