On Thursday, U.S. District Court Judge Amy Berman Jackson approved a joint motion to extend the SEC’s lawsuit for 60 days.
Both Binance and the SEC submitted a joint request to the court late Monday, arguing that changes may occur due to the new task force established by the commission.
Binance hopes they can ultimately dismiss the case, asserting that it is baseless.
The parties argued in court filings that the SEC formed a task force last month to review and develop cryptocurrency regulations, which could “impact and facilitate a potential resolution of the case.”
A spokesperson for Binance even commented on the filing, stating:
“The SEC’s case has always lacked merit, and we are eager to put it behind us and continue focusing on making Binance the safest, licensed, and most trusted exchange in the world.”
However, former SEC official Corey Frayer opposed the motion to stay, claiming that the CEO has already committed to guilty pleas regarding criminal charges, and that an employee of the commission has admitted to violations of securities laws that could lead to “complete dereliction.”
In June 2023, the SEC charged Binance CEO Changpeng Zhao and the exchange with 13 counts, alleging that they operated an unregistered exchange, manipulated the market, failed to restrict U.S. investors from the exchange’s services, and misled its market surveillance controls. In November 2023, Binance’s Zhao pleaded guilty to money laundering charges, resulting in a prison sentence.
While some remain dissatisfied with the SEC, D.C. Federal Judge Amy Berman approved the request to temporarily halt the case for the next 60 days.
The cryptocurrency industry feels optimistic about the SEC’s Republican leadership.
Meanwhile, the SEC participated in the accommodation request, which has raised hopes among some leaders in the cryptocurrency sector. Some believe that under the new commissioner Hester Peirce, the SEC has shifted to a more friendly stance.
The joint filing also indicated that the commission is reviewing existing cases against cryptocurrency companies, particularly those where the former government claimed certain cryptocurrencies should be treated similarly to securities. On Tuesday, at an event hosted by the Federalist Society for Law and Public Policy Studies, Peirce stated that they have made mistakes by enforcing crypto policies through enforcement actions.
President Trump has nominated lawyer and pro-cryptocurrency supporter Paul Atkins for the SEC chair position. Congress has yet to confirm Atkins, but the SEC has already begun to change its approach to cryptocurrency under its current Republican leadership.
