The US Securities and Exchange Commission (SEC) and Binance, a prominent crypto exchange, have requested a two-month extension from a federal judge as their legal dispute continues into its second year.
“Since the Court temporarily halted this case, both parties have engaged in constructive discussions, including considerations regarding how the crypto task force’s activities might influence the SEC’s claims,” Binance and the SEC mentioned in a joint status report submitted to the US District Court for the District of Columbia on April 11.
SEC seeks Binance’s consent for the extension
The filing indicates that the SEC has asked Binance to consent to an additional 60-day pause as it looks for approval on any potential resolutions or amendments concerning the litigation’s scope.
“The Defendants have concurred that maintaining the stay is suitable and beneficial for judicial efficiency,” the document stated.
This request follows the SEC’s decision to withdraw several lawsuits targeting crypto exchanges, including Coinbase, Kraken, and Gemini, as well as Robinhood and ConsenSys.
At the conclusion of the 60-day period, both the SEC and Binance plan to present another joint status report. This marks the second instance this year where they have sought a 60-day extension, having previously been granted one by the judge on February 11.
The recent formation of the crypto task force significantly influenced the request for this second extension.
The February request came shortly after Gary Gensler, known for his skepticism towards crypto, resigned as head of the SEC on January 20, with crypto-friendly commissioner Mark Uyeda stepping in as acting chair.
During that time, both the SEC and Binance pointed to the launch of the SEC’s Crypto Task Force as a reason for the stay.
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Formed just a day after Gensler’s resignation on January 21, the task force aims to “aid the Commission in establishing clear regulatory guidelines, offer feasible registration pathways, create sensible disclosure frameworks, and allocate enforcement resources wisely.”
The SEC’s ongoing legal battle with Binance began in June 2023, when the agency filed a lawsuit against Binance, its US operations, and CEO Changpeng “CZ” Zhao, alleging 13 violations, including unregistered offers and sales of the BNB and Binance USD tokens, as well as issues related to Simple Earn and BNB Vault products and its staking platform.
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