On Friday, legal representatives for the U.S. Securities and Exchange Commission (SEC) and Binance requested a federal judge to extend the current pause in the SEC’s case against the cryptocurrency exchange for an additional two months, pointing to “productive discussions.”
The SEC initiated legal action against Binance in 2023, claiming that the exchange, along with its U.S. affiliate and executives such as the former CEO Changpeng Zhao, breached federal securities laws by functioning without the necessary licensing as a clearing agency, broker, and exchange. The agency also raised concerns regarding the alleged mixing of funds and manipulation of trading volumes for Binance.US. In February, following U.S. President Donald Trump’s return to office and the appointment of Commissioner Mark Uyeda as the acting chair, the SEC requested a 60-day hiatus in the proceedings, which was due to end on Monday. The SEC cited the establishment of a new crypto task force tasked with creating clearer guidelines on the applicability of securities law to digital assets as the rationale for seeking this extension.
According to a document filed on Friday, the involved attorneys mentioned that the discussions revolved around “the possible effects of the crypto task force’s efforts on the SEC’s claims” and requested an additional 60-day delay.
“Given these ongoing discussions and the time needed for the staff to obtain the necessary authorization from the Commission to finalize any resolutions or modifications to the litigation’s scope, the SEC asked the Defendants to agree to a continuation of the existing pause for another 60 days, which the Defendants concurred was appropriate and beneficial for judicial efficiency,” the document stated.