Binance and the US Securities and Exchange Commission (SEC) have jointly filed a motion to pause their ongoing legal proceedings for 60 days.
This decision comes after the SEC established a new crypto-focused task force, which both parties believe could influence the outcome of their case.
Binance and SEC Agree to a 60-Day Legal Stay
Fox Business correspondent Eleanor Terrett highlighted the unprecedented nature of this move. She attributed the development to the change in SEC leadership, citing Commissioner Mark Uyeda’s provisional chairmanship.
“Here’s the first requested pause on crypto litigation in the courts since Mark Uyeda took over as acting chair. Binance and the SEC have just filed a joint motion to stay the agency’s case against the exchange for 60 days, citing the new SEC crypto task force as having a possible bearing on the case,” Terrett wrote.
In a statement, Binance stated that the SEC’s claims have always been without merit.
“We are grateful to Interim Chairman Uyeda for his thoughtful approach to ensuring digital assets receive the appropriate legislative and regulatory focus in this new, golden era of blockchain in the U.S. and around the world. The SEC’s case has always been without merit and we are eager to put this behind us,” a Binance spokesperson told BeInCrypto.
Led by Commissioner Hester Peirce, the crypto task force aims to develop a comprehensive regulatory framework for cryptocurrencies. This initiative represents a shift from the previous administration’s stringent enforcement actions. Instead, it provides clear guidelines and fosters innovation within the crypto industry.
“The new commitment to a better regulatory environment should not be viewed as an endorsement of any crypto coin or token. Regardless of whether those tokens or coins fall within our jurisdiction, the Commission never endorses any product or service; there is no such thing as an SEC seal of approval,” Peirce articulated in a recent press release.
The creation of this task force has already begun to influence ongoing legal battles. Notably, the SEC recently removed the Ripple lawsuit from its website. The longstanding case had been a focal point in the crypto community.
The removal occurred shortly after the regulator challenged a court ruling on XRP retail sales. It indicates a potential reevaluation of its stance on such matters.
BeInCrypto data shows that Binance Coin price jumped almost 5% on this news. As of this writing, BNB was trading for $637.63, a 4.62% surge since Tuesday’s session opened.
Shifting Regulatory Market, Enforcement to Collaboration
The SEC’s approach to crypto regulation appears to be changing in the broader context. Following the departure of former Chair Gary Gensler, known for his stringent stance on cryptocurrencies, Mark Uyeda has signaled a more collaborative approach. This includes engaging with industry stakeholders to develop practical regulatory frameworks that balance innovation with investor protection.
According to Terrett, non-fraud cases in the crypto market could result in amicable decisions, like the Binance versus SEC case.
“…I expect we’ll see other non-fraud cases (i.e., Ripple, Coinbase, Kraken, and others) follow suit in this manner,” she added.
Other major crypto exchanges are also experiencing shifts in their legal battles with the SEC. Coinbase recently secured a favorable court ruling, with the US Court siding with the exchange in a dispute over securities classifications. This victory reflects the judiciary’s recognition of the need for tailored regulatory approaches.
However, not all crypto entities have seen positive developments. Kraken faced a setback when a federal judge dismissed its key defense against the SEC’s allegations of offering unregistered securities. BeInCrypto reported that the court rejected Kraken’s argument that the SEC lacks authority over cryptocurrencies under the “major questions doctrine.” This indicates the challenges crypto firms faced under the previous SEC administration.
Meanwhile, industry leaders are vocal about the need for regulatory clarity. Coinbase CEO Brian Armstrong recently stated that the next SEC Chair should drop “frivolous cases” and issue an apology.
“The next SEC chair should withdraw all frivolous cases and issue an apology to the American people. It would not undo the damage done to the country, but it would start the process of restoring trust in the SEC as an institution,” Armstrong posted.
The joint motion by Binance and the SEC to pause their legal battle signifies a potential turning point in crypto regulation. The outcome of this pause, influenced by the new task force’s work, could set a precedent for handling similar cases.
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