News 
February 11, 2025 
4 min. 
In a monumental shift, Binance along with the U.S Securities and Exchange Commission (SEC) have reached an agreement to suspend the legal battle for 60 days. This joint motion was filled to the Us District Court for The District of Columbia on 10 February 2025, only weeks after Mark Uyeda became the SEC Chairman. This is linked to the recently formed SEC crypto task force under the leadership of Commissioner Hester Peirce, which focuses on assessing the regulatory posture towards cryptocurrency internationally.
Binance Lawsuit on Hold—What Happens Next?
The decision to temporarily halt the lawsuit marks a possible change in the strategy employed by the SEC with regard to enforcement actions in matters involving crypto. Noticeably, both the task force and the SEC were aware that the findings could potentially settle the case and therefore sought a stay of the proceedings. In this case, at the end of the 60 days, both sides are instructed to file a report detailing what actions are to be taken next, extension of this agreement being one of them.
The new development may also affect the motions pending by Binance to overturn the SEC’s new pleading. Last month, Binance and its founder, Changpeng Zhao (CZ), submitted a new motion claiming that the SEC did not fulfill its burden of proof in how its case against the exchange satisfies the legal Howey Test for securities. Furthermore, Binance’s legal representatives pointed out the glaring absence of the clearly defined distinction of the boundaries which separates securities from what are termed commodities, such as the Bitcoin (BTC) and Ethereum (ETH).
This gives both parties time to reconsider their strategies and permits the SEC’s crypto task force to work on regulatory guidance. If the task force does go ahead and publishes new rules or policies, it can lead to an expeditious settlement and avoids additional litigation.
Could the SEC Scale Back Its Crypto Crackdown?
The decision to pause the Binance lawsuit has sparked speculation about broader regulatory shifts under Uyeda’s leadership. Fox Business journalist Eleanor Terrett suggests that other ongoing crypto cases, such as those involving Ripple, Coinbase, and Kraken, may also see similar pauses or reconsiderations. This could mark a turning point in the SEC’s approach to crypto enforcement, especially for non-fraud cases.
Last week, the SEC’s crypto task force launched an official website, outlining its mission to provide clearer guidelines for the digital asset industry. The task force aims to strike a balance between fostering innovation and ensuring investor protection. By working closely with SEC staff and engaging with the public, it seeks to redefine how securities laws apply to cryptocurrencies.
With the Binance lawsuit temporarily on hold and the SEC’s evolving stance on crypto regulation, the next 60 days could be crucial in shaping the future of digital asset oversight in the U.S. Whether this signals a broader softening of the SEC’s aggressive crypto enforcement remains to be seen, but the pause in legal proceedings marks a notable shift in the regulatory landscape.
