A filing on February 10 shows that the US Securities and Exchange Commission and Binance both requested to suspend their lawsuit for 60 days.
Both sides explained that the SEC had established an independent crypto task force, under Mark Uyeda’s leadership as acting chairman. According to the filing, the task force’s work could influence the case’s resolution.
Binance, noting judicial effectiveness as an important factor, agreed to the temporary suspension. Both parties will then submit a status report together to decide if an extension of the suspension is needed.
This filing states:
“As this is a joint motion, there is no prejudice to any party here, and a stay could save the Parties resources because, if an early resolution could be reached, it would obviate the need to continue merits discovery.”
It is an exciting development to a case that was originally filed in 2023. Binance had been accused of breaking US Securities laws at the time by offering multiple Tokens such as Solana Cardano Algorand. According to the SEC, these assets are securities that meet Howey Test requirements.
Binance’s response to the July 2024 attempt by the agency to amend their complaint was to move to dismiss not only the amendment but the whole case.
SEC crypto approach
This development reflects a broader shift in the SEC’s approach to crypto regulation under Uyeda’s leadership.
The new leadership has introduced a ‘Crypto Task Force‘ and launched a dedicated webpage outlining the agency’s evolving regulatory stance on digital assets.
Hester P. Peirce leads the taskforce. A longtime proponent of more specific crypto-regulations, she has led this group for many years. She has repeatedly criticized the SEC’s previous enforcement tactics, arguing that opaque guidelines have stifled innovation and forced crypto firms to navigate uncertain legal terrain.
The SEC has also reportedly reduced the size of a unit that was previously devoted to crypto enforcement. This group consisted of 50 staff and lawyers. This restructuring confirms that the SEC is reconsidering its approach to digital assets.
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