On Thursday, U.S. District Court Judge Amy Berman Jackson approved a joint motion to continue the SEC’s lawsuit for 60 days.
Both Binance and the SEC submitted a joint request to the court late Monday, seeking a delay in the litigation, citing potential changes in the new committee’s task force that could affect the case.
Binance hopes they can ultimately dismiss the case, asserting that it is baseless.
The parties argued in court filings that the SEC established a task force last month to review and formulate cryptocurrency regulations, which could “impact and facilitate the potential resolution of the case.”
A spokesperson for Binance even commented on the filing, stating:
“The SEC’s case has no merits, and we are eager to put it behind us and continue focusing on making Binance the world’s safest, licensed, and most trusted exchange.”
However, former SEC official Corey Frayer opposed the motion for a stay, arguing that the CEO has already committed to a guilty plea in his criminal charges, and that an employee of the commission has admitted to violations of securities law that could lead to “complete dereliction.”
In June 2023, the SEC charged Binance CEO Changpeng Zhao and the exchange with 13 counts, accusing them of operating an unregistered exchange, manipulating the market, failing to restrict U.S. investors from the exchange’s services, and misleading its market surveillance controls. In November 2023, Zhao pleaded guilty to his money laundering charges and is awaiting his prison sentence.
While some remain dissatisfied with the SEC, Washington, D.C. Federal Judge Amy Berman approved the request and temporarily stayed the case for the next 60 days.
The cryptocurrency industry is feeling optimistic about SEC leadership under Republicans.
Meanwhile, the SEC has been involved in accommodation requests, leading some leaders in the cryptocurrency industry to believe that under the new Commissioner Hester Peirce, the agency has adopted a more favorable stance.
The joint filing also indicated that the commission is reviewing existing cases against cryptocurrency companies, particularly those involving tokens that the former government claimed should be treated similarly to securities. On Tuesday, at an event hosted by the Federalist Society for Law and Public Policy Studies, Peirce asserted that they have made mistakes by pursuing cryptocurrency policies through enforcement actions.
President Trump has nominated attorney and pro-crypto supporter Paul Atkins for the SEC chair position. Congress has yet to confirm Atkins, but the SEC has already begun to alter its approach to cryptocurrencies under its current Republican leadership.