A U.S. judge has temporarily suspended the SEC’s lawsuit against Binance for 60 days. Both sides agreed to the pause, saying a newly formed SEC task force could help shape future crypto regulations, which might impact the case.
The SEC first filed charges against Binance and its founder, Changpeng Zhao, in June 2023, accusing the exchange of inflating trading volumes, misusing customer funds, and misleading investors. However, with the U.S. government now reviewing crypto rules, the case is at a standstill for the time being.
A major part of the shift is the SEC’s new crypto task force, led by Commissioner Hester Peirce, who’s known for being more crypto-friendly. This task force was created to help set clearer regulations that would give crypto businesses more certainty and hopefully keep the industry from falling into a legal gray area.
The landscape around crypto politics in the U.S. is changing. Donald Trump has advocated for America to lead the crypto space, endorsing Paul Atkins as Gary Gensler’s SEC replacement. Gensler, who has spoken out against crypto, advocated harsher regulations at times seen as inhibiting innovation by many outside and, at times, by his own political allies.