Binance and SEC Seek Temporary Reprieve: Coinbase and Kraken Might Follow
The SEC has paused its lawsuit against Binance for 60 days, potentially influencing other cryptocurrency firms.
The US Securities and Exchange Commission (SEC) has decided to pause its lawsuit against Binance for 60 days. Both Binance and the SEC jointly requested a federal judge to stay the lawsuit, bringing attention to the potential impact of a newly launched task force.
According to a Reuters report from February 11, 2025, this request marks a significant shift from the SEC’s previous contest under Democratic leadership.
US President Donald Trump’s SEC has a different approach to cryptocurrency regulation. Could this decision pave the way for others, like Ripple, Coinbase, and Kraken?
🚨NEW: Here’s the first requested pause on #crypto litigation since @MarkUyedaUS became acting chair. @binance and @SECGov have filed a joint motion to stay their case for 60 days, citing the new SEC crypto task force. — Eleanor Terrett (@EleanorTerrett) February 11, 2025
New Task Force May Facilitate A Resolution
According to the joint filing, “The work of this task force (the new SEC task force) may impact and facilitate the potential resolution of this case.” After the 60-day period, the parties plan to report on whether the stay should continue.
The SEC announced a dedicated cryptocurrency task force on January 21, 2025. Commissioner Hester Peirce is set to lead this task force, which is viewed positively by those in the cryptocurrency community due to her supportive views on crypto.
Under past leadership, the agency was known for stringent enforcement against cryptocurrency firms, initiating 83 actions against major players such as Coinbase, Binance, and Ripple Labs for alleged securities violations. However, the new leadership indicates a potential shift away from this aggressive strategy.
In a related development, the SEC granted accelerated approval for Bitwise Asset Management’s Bitcoin-Ethereum exchange-traded fund (ETF) on January 30, 2024, reflecting a pivotal moment in the regulatory landscape for cryptocurrency financial products.
As the new administration begins reassessing crypto-related cases, can we expect a more lenient approach to cryptocurrency regulations?
