The U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Binance have jointly submitted a request to pause their ongoing legal proceedings for an additional 60 days.
The update was reported by former FOX journalist Eleanor Terrett via X, citing a recent court filing.
The request comes after what both parties described as “productive” discussions, some of which involve the SEC’s newly established cryptocurrency task force.
The pause aims to allow both sides to explore a more cooperative path forward, with the filing noting that a continued suspension is in the best interest of all involved.
If approved, this will extend the current stay, which was originally set to expire on April 14, 2025.
Lawsuit Centers on Regulatory Violations and Asset Management Concerns
The legal conflict began in 2023 when the SEC filed a complaint against Binance, alleging that the exchange operated as an unregistered broker, exchange, and clearing agency through its U.S. entity, Binance.US.
The lawsuit also raised serious concerns about the mishandling of customer funds and the potential manipulation of trading volumes.
These allegations reflected growing regulatory frustration with crypto firms operating outside traditional financial norms.
However, the ongoing negotiations and temporary legal pause may signal a shift in tone from the SEC, as its crypto task force attempts to align digital asset practices with established securities law frameworks.
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Legal Pause Aims to Foster Judicial Efficiency and Regulatory Alignment
In their joint filing, the SEC and Binance emphasized that extending the litigation pause would promote judicial efficiency and support the broader goal of resolving the case without further court burden.
The court had previously mandated that both parties submit a joint status report by April 14, 2025, which now aligns with the proposed new suspension timeline.
The approach reflects a growing willingness on both sides to find middle ground through regulatory dialogue rather than prolonged litigation.
The participation of the SEC’s cryptocurrency task force appears to be a critical factor, as it works to establish clearer guidance for how crypto assets should be regulated under existing laws.
Binance Still Under the Microscope Despite Cooperative Efforts
Despite these developments, Binance remains under significant regulatory scrutiny.
The company’s founder, Changpeng “CZ” Zhao, resigned from his role in November 2023 after pleading guilty to criminal charges involving unlicensed money transmission and violations of anti-money laundering laws.
Binance paid over $4 billion in penalties, and CZ was sentenced to four months in prison, serving time and being released in 2024.
Although Binance continues to operate, its involvement with the SEC’s crypto task force, launched in February 2025, indicates a strategic pivot toward compliance.
The task force is seen as a key instrument in clarifying crypto regulation in the U.S. and may be instrumental in determining the ultimate resolution of the SEC’s case against Binance.
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