The US SEC and Binance seek a 60-day pause in a legal battle that began in June 2023. In a joint motion filed by the Columbia District Court, both parties urged the court to approve the stay. The request comes after former SEC chairman Gary Gensler, known for his anti-Criptotto stance, resigned in January. U.S. President Donald Trump has replaced him with Mark Uyeda as the acting head of the SEC and has taken a greater leniency towards the cryptocurrency sector in recent months.
Details on filing a motion
The motion names Binance Holdings Limited, BAM Trading Service Inc., BAM Management Us Holdings Inc. and Changpeng Zhao were defendants against the SEC as plaintiffs. Overall, all parties stayed in this case for two months.
“The District Court considered three factors when deciding whether to have a case: “(1) harm to non-moving parties if stay is issued; (2) the need for accommodation for moving parties, that is, if not issued, the moving parties will be subject to moving parties. (3) Whether the accommodation will promote the effective use of the court’s resources. Here, the parties consider it necessary to stay briefly. ” the document read.
Both Binance and the SEC urged the court to grant the house.
“At the end of the 60-day stay, both parties advised them to submit a joint identity report, including whether there is a need to continue staying,” the document states.
What led to this development
In its legal battle with the SEC, Binance repeatedly stressed the lack of clear regulatory guidelines in the United States.
After Donald Trump returned to the White House in January to serve as the 47th president of the United States, he ordered a dedicated task force to create clear cryptocurrency regulations. Acting SEC Chairman Mark Uyeda is overseeing its efforts.
According to the motion filed, both Binance and the SEC believe that the task force’s work may help pave the way for potential solutions to resolve their legal disputes.
“The Securities and Exchange Commission (SEC) proposed a short stay to the defendant, who agreed that the stay was appropriate and for the benefit of the judicial economy. As this is a joint motion, neither party here will be biased and accommodation will be held. Resources of the parties can be saved because if early resolutions can be reached, the need for continued cooperative discovery can be eliminated,” the joint document added.
Although the exact schedule remains uncertain, the court is expected to decide to approve accommodation in the coming days.
The dispute between Binance and SEC
In June 2023, the Securities and Exchange Commission (SEC) filed a lawsuit against Binance, accusing cryptocurrency exchanges of violating U.S. securities laws. The SEC said the exchange is running as an unregistered stock exchange and misled the investor community.
“By engaging in multiple unregistered products and not yet registered a binary platform under Zhao’s control, this imposes super-large risks and conflicts of interest on investors. These risks and conflicts are only due to the lack of transparency of the Binance platform, for the relevant These risks and conflicts are exacerbated by the reliance on party transactions and lies about controls to prevent manipulation of sexual transactions,” Gurbir S. Grewal, former SEC law enforcement director, said at the time.
As an argument, Grace reportedly listed the provisions of the U.S. that the commodity in securities and crypto arenas are not clear. Coinbase, Binance’s competitor in the crypto exchange department, also locked in Horns with the SEC because of the lack of crypto rules last year.
Under President Trump, the United States is ready to take several pro-Claputo steps, including developing comprehensive guidelines for the cryptocurrency sector. During his campaign, the billionaire businessman promised to transform us into the crypto capital of the world.
