SEC and Binance Seek 60-Day Pause in Lawsuit – What’s Next?

The U.S. Securities and Exchange Commission (SEC) and Binance, one of the world’s largest crypto exchanges, have filed a joint motion to pause their ongoing legal battle for 60 days. The request comes as regulatory changes within the SEC could impact the case’s outcome.

On February 10, 2025, FOX Business journalist Eleanor Terrett reported that both parties submitted a motion to pause litigation, citing the formation of the SEC’s new Crypto Task Force, led by Commissioner Hester Peirce.

Could this legal pause signal a shift in the SEC’s crypto enforcement strategy?

Why Are the SEC and Binance Halting Litigation?

The joint motion argues that the newly formed Crypto Task Force, created under SEC Acting Chair Mark Uyeda, may introduce policy changes that affect the case’s resolution.

The motion states:

“This brief stay will promote the efficient use of the Court’s resources, as a resolution would obviate the need for the Court to resolve the Defendants’ pending Motions to Dismiss the Amended Complaint.”

Both parties believe the pause could conserve legal resources and potentially lead to an early settlement as the SEC re-evaluates its crypto regulatory stance.

SEC vs. Binance: A Recap of the Lawsuit

The SEC filed a lawsuit against Binance in June 2023, alleging that the exchange:

🔹 Offered unregistered securities
🔹 Operated an unregulated trading platform in the U.S.
🔹 Misled investors about its security and compliance measures

Partial Victory for Binance

In July 2024, Judge Amy Berman Jackson denied Binance’s motion for full dismissal, but granted partial victories, dismissing key SEC claims:

✅ Dismissed Claims:

• Secondary market sales of BNB tokens
• BUSD stablecoin classification as a security
• SEC’s assertion that all crypto tokens are securities

❌ Claims That Will Proceed:

• BNB’s Initial Coin Offering (ICO) sales
• Binance’s staking program
• Potential anti-fraud violations

The SEC’s stance on crypto regulations remains under scrutiny, but with new leadership, the agency may be reevaluating its approach.

Will Other Crypto Lawsuits Be Paused Next?

According to Terrett, this legal pause is the first in a major crypto lawsuit since Uyeda took over the SEC on January 20.

She speculates that other crypto firms facing SEC lawsuits—including Ripple, Coinbase, and Kraken—may also request litigation pauses to assess potential regulatory shifts.

Following the 60-day stay, Binance and the SEC will submit a joint status report, which will determine whether to:

• Extend the pause
• Proceed with legal action
• Negotiate a potential settlement

This temporary legal halt suggests that the SEC’s approach to crypto enforcement under its new leadership may be undergoing a significant shift.