A federal judge in Washington, D.C., has granted the temporary halt of the U.S. SEC lawsuit against Binance, approving the joint request by both parties.
The 60-day stay, issued by U.S. District Judge Amy Berman Jackson, follows a new development involving an SEC task force reviewing crypto regulations. The SEC and Binance sought the pause to evaluate how the task force’s findings might affect the case.
The lawsuit, filed in June 2023, accused Binance and its founder, Changpeng Zhao, of inflating trading volumes, misusing customer funds, and failing to provide transparent surveillance measures.
The regulator previously maintained that Binance listed crypto assets functioning as securities without proper registration.
SEC Task Force and Its Impact
The SEC task force, created last month, is led by Commissioner Hester Peirce, a known proponent of cryptocurrency. The initiative hopes to influence ongoing regulatory actions, including high-profile enforcement cases.
The decision to pause the Binance case signals a potential shift in the SEC’s approach toward crypto under new leadership.
Market participants expect that the SEC could reassess its enforcement strategy under the new leadership. The lawsuit against Binance falls within this scope, making it a likely subject of review.
The SEC’s previous chair, Gary Gensler, advocated for stricter oversight, often comparing the industry’s rapid growth to a “Wild West” requiring stronger investor protections.
Meanwhile, President Donald Trump has pledged to make the U.S. a leading hub for cryptocurrency. His nomination of Paul Atkins, an attorney with crypto-friendly views, as the potential new SEC chair supports expectations of regulatory changes favoring the industry.
Another Regulatory Hurdle for Binance
It is crucial to note that French regulators have also opened an inquiry into Binance, citing potential links to fraudulent activities.
The economic and financial arm of the Paris prosecutor’s office, JUNALCO, disclosed on Tuesday that it had initiated an investigation into the exchange.
Authorities are scrutinizing Binance’s alleged involvement in various illicit operations, including facilitating money laundering, drug-related transactions, and terrorism financing. The probe spans a five-year period, covering Binance’s activities from 2019 to 2024.
French officials are also examining potential fraudulent activities beyond their borders, assessing the company’s compliance with European financial laws. The ongoing investigation marks another regulatory hurdle for Binance, which has faced heightened scrutiny from authorities worldwide.
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