The U.S. Securities and Exchange Commission (SEC) and Binance have jointly requested a 60-day pause in their ongoing legal battle, a move that could signal a shift in how crypto regulation is enforced. The request, filed in the U.S. District Court for the District of Columbia on February 10, comes as the SEC establishes a new crypto task force, a development that may have broader implications for other ongoing litigation involving crypto firms.
Fox Business journalist Eleanor Terrett, who first reported on the motion, suggested that this pause could set a precedent for other firms facing SEC lawsuits, particularly those not accused of fraud. Companies such as Ripple, Coinbase, and Kraken might now consider similar legal strategies as they navigate their disputes with the regulatory body.
The Crypto Task Force and Regulatory Strategy
The SEC’s newly launched Crypto Task Force is expected to play a central role in shaping regulatory policies under Acting Chairman Mark Uyeda. Uyeda, who was appointed by former President Donald Trump, has initiated reforms aimed at moving from enforcement-heavy regulation to a more proactive policy framework. The task force, led by Commissioner Hester Peirce—an outspoken advocate for crypto innovation—will focus on providing clearer guidelines for the industry rather than relying solely on enforcement actions.
According to the joint motion, the task force’s work “may impact and facilitate the potential resolution of this case,” suggesting that its findings could influence how the SEC proceeds with its case against Binance. This shift in approach may extend beyond Binance, affecting the legal standing of other major crypto firms currently entangled in regulatory disputes.
Broader Implications for Crypto Litigation
The SEC has previously taken legal action against Binance, its affiliated entities, and former CEO Changpeng Zhao, alleging that the company operated as an unregistered securities exchange, broker, and clearing agency. The regulatory body also accused Binance of misleading investors, inflating trading volumes, and concealing key operational details. Furthermore, the SEC sued Binance for promoting unregistered securities, including its native token BNB and other digital assets like SOL and ADA. However, in a significant ruling in June 2024, a federal judge dismissed the argument that BNB on secondary markets constituted securities.
Other crypto firms have faced similar scrutiny. Coinbase is currently battling allegations that it operated an unregistered securities exchange and failed to register its crypto staking program. Meanwhile, Ripple remains locked in a legal dispute over the classification of its XRP token. The SEC’s appeal of a 2023 ruling—stating that XRP was not a security when sold to retail investors—is now before the Court of Appeals for the Second Circuit.
With the SEC’s regulatory stance under review and the Crypto Task Force poised to influence future decisions, the 60-day legal pause could mark the beginning of a broader shift in how crypto firms and regulators interact. As Terrett noted in her report on social media platform X, “I expect we’ll see other non-fraud cases (i.e. @Ripple, @coinbase, @krakenfx and others) follow suit in this manner.” The coming months may determine whether this joint motion is an isolated event or a sign of a new regulatory landscape for the crypto industry.
