The legal showdown between the U.S. Securities and Exchange Commission (SEC) and Binance appears to be cooling—for now. In a joint filing submitted Friday, the two sides asked a federal judge to extend their current litigation pause by another 60 days, citing “productive discussions” and a rapidly evolving regulatory environment.
The current stay, set to expire Monday, was first implemented in February following President Donald Trump’s return to office and the appointment of Commissioner Mark Uyeda as acting SEC chair. Since then, Uyeda has initiated a fundamental rethinking of the agency’s approach to crypto enforcement, establishing a dedicated task force to clarify how securities laws apply to digital assets. The SEC cited this initiative as a central reason for extending the pause, hinting that the agency may be reassessing its overall strategy toward the crypto industry under new leadership.
Binance, for its part, has signaled openness to engagement and reform. The exchange has reportedly been cooperating with regulators more closely, even joining a new working group led by the SEC. The joint request to delay further court action suggests that both parties are exploring alternative paths forward—ones that may eventually lead to settlement or revised charges aligned with a shifting regulatory climate.
Binance’s Legal History Still Casts a Long Shadow
Despite this potential de-escalation, Binance continues to grapple with legal fallout from its aggressive U.S. expansion. The SEC’s original lawsuit, filed in 2023, accused Binance and its former CEO Changpeng Zhao (CZ) of operating an unregistered exchange, broker, and clearing agency, as well as mishandling customer funds and manipulating trading volumes.
Those civil charges came on the heels of a separate and highly consequential case brought by the U.S. Department of Justice. In November 2023, CZ stepped down as Binance’s CEO after pleading guilty to charges related to operating an unlicensed money-transmitting business and enabling money laundering. That plea resulted in a $4.3 billion settlement—one of the largest in U.S. financial enforcement history. CZ later served a four-month sentence and was released in September 2024.
Since then, Binance has taken steps to rebuild its regulatory standing, and the current pause in SEC proceedings reflects a new chapter in that effort. Whether this signals a broader regulatory détente or simply a temporary reprieve remains to be seen.
Ripple-SEC Case Offers Blueprint for Resolution
The shift in the SEC’s enforcement posture is also visible in its handling of another high-profile crypto case: the long-running lawsuit against Ripple Labs. In a joint filing submitted to the U.S. Court of Appeals for the Second Circuit, Ripple and the SEC confirmed that they are withdrawing their respective appeals and have reached an agreement in principle to settle the dispute.
While the full terms of the agreement have not been disclosed, the move marks a dramatic turning point in a case that has influenced how regulators and courts interpret the legal status of digital assets. Ripple CEO Brad Garlinghouse previously indicated that the SEC had walked back key challenges to the 2023 ruling, which had largely favored Ripple—especially with respect to XRP’s status in secondary market transactions.
Though the deal is not yet finalized, the SEC will need to ratify the settlement internally, and the district court must issue an indicative ruling to formally conclude the case. If approved, the Ripple resolution could set a precedent for other crypto litigation—potentially including the Binance case.
Taken together, these developments suggest that the SEC is moving toward a more dialogue-driven, case-by-case approach to crypto regulation—an approach that may have ripple effects across the broader industry.
Quick Facts
- The SEC and Binance have jointly requested a 60-day extension to their paused legal proceedings, citing ongoing settlement discussions.
- The original 2023 lawsuit accused Binance of operating without proper registration and mismanaging customer assets.
- The SEC’s new crypto task force, formed under Acting Chair Mark Uyeda, aims to draft clearer guidelines for digital assets.
- Ripple and the SEC have similarly paused appeals to finalize a settlement, signaling a broader trend toward collaborative regulatory outcomes.
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