The U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Binance have requested a federal judge for a two-month pause in their nearly two-year legal battle.
SEC's Request for Extension
In a joint motion filed with the U.S. District Court for the District of Columbia, SEC and Binance stated that they have been engaged in productive discussions since the case was stayed. The SEC is asking Binance to agree to a 60-day extension to continue discussions about possible resolutions or changes to the litigation.
Reasons for Requests and Recent Events
The request comes shortly after the SEC dropped a series of crypto-related lawsuits against exchanges such as Coinbase, Kraken, and Gemini. At the conclusion of this 60-day period, SEC and Binance plan to submit another joint status report. This marks the second 60-day pause requested this year.
Long-Term Consequences of the Lawsuit
The legal battle began in June 2023 when the SEC filed a lawsuit against Binance and its CEO Changpeng Zhao, pressing 13 charges, including unregistered offers of Binance tokens. The recently established SEC's Crypto Task Force aims to create clearer regulatory guidelines within the industry.
The request for an extension is considered in the context of leadership changes at the SEC and efforts to alter regulatory policies concerning cryptocurrency.
