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The U.S. Securities and Exchange Commission (SEC) and Binance have agreed to temporarily halt their legal battle while the SEC’s new crypto task force develops clearer regulatory guidelines. The joint request, filed on Feb. 10, seeks a 60-day stay on court proceedings.
Why the Lawsuit is Paused
- The SEC’s newly formed crypto task force, launched by Acting SEC Chairman Mark T. Uyeda on Jan. 21, is working on regulations for digital assets.
- The pause allows both parties to assess how these new rules might impact the case.
- The agreement aims to save time and resources while potentially leading to an early resolution.
Who’s Involved?
- SEC – The U.S. financial regulator overseeing securities markets.
- Binance Holdings Ltd. – The global cryptocurrency exchange.
- BAM Trading Services Inc. & BAM Management US Holdings Inc. – Operate Binance.US, Binance’s U.S. branch.
- Changpeng Zhao (CZ) – Binance’s founder and former CEO.
SEC’s Allegations Against Binance
- The SEC claims Binance and its U.S. entities violated securities laws by operating without proper registration.
- Binance denies the allegations and is fighting the case in court.
Next Steps
- If approved, the stay will last 60 days, after which both sides will submit a status report.
- A decision on extending the pause will depend on progress made by the SEC’s task force.
- A resolution could set a legal precedent for how crypto companies operate in the U.S.
