- Both parties reference a new SEC task force, which proposes rules redefining how crypto operations fit existing laws.
- Changpeng Zhao faced serious accusations, served time in the United States, and remains integral to Binance’s core operations.
The U.S. Securities and Exchange Commission (SEC) and the cryptocurrency exchange Binance have jointly asked a federal judge to grant a 60-day extension in their legal proceedings. This case began in 2023 when the SEC accused Binance and its affiliate, Binance.US, of operating as a clearing agency, broker, and trading venue without authorization.
Both sides reported that their talks have been “productive” and may lead to a resolution, whether in part or in full. They previously agreed to hold off on further court actions in mid-February, which happened around the time a new administration stepped into the SEC. Court filings this week point to ongoing discussions that might be influenced by a newly formed task force within the SEC. This group will review rules and clarify policies for digital assets.
The lawsuit against Binance involves several allegations. The SEC has claimed that Binance mingled customer funds, manipulated trading volume on Binance.US, and broke rules tied to federal securities laws. Changpeng Zhao, the former CEO of Binance, was also charged in connection with these activities. He later served time in a U.S. facility and has since been released.
Today’s request for an extended pause signals that both parties see potential for an understanding. They noted that the SEC’s internal review processes require more time if changes in strategy become necessary, especially under the new crypto task force. This unit aims to outline official guidelines that might clarify when a digital asset platform is breaking securities regulations.
Despite the request for more time, the lawsuit against Binance remains an example of the challenges the crypto industry faces in the United States. Regulators have shown caution when examining digital assets, especially after past collapses and frauds.
If the SEC and Binance negotiate a deal, the outcome might bring clarity for other exchanges that serve U.S. users. Otherwise, the dispute may continue, shaping future discussions about how digital assets fit within existing laws.
