Crypto News

Crypto Roundup: SEC and Binance Seek 60-Day Legal Stay, 90% Chance for Litecoin ETF Approval, and Plea Deal for Alleged SEC Hacker

February 11, 2025
Smart Money

Significant Developments in Cryptocurrency: SEC, Binance, and Legal Consequences

Date: February 11, 2025

Time: 13:34 UTC

Today marks a pivotal moment in the cryptocurrency landscape as significant developments unfold in the legal and regulatory realms. The U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Binance have filed a joint motion to pause their ongoing legal case, analysts project a high likelihood of a Litecoin exchange-traded fund (ETF) approval, and U.S. authorities propose a plea deal for an alleged hacker linked to a high-profile security breach.

SEC and Binance File Motion to Pause Legal Case

In a notable move, the SEC and Binance have submitted a joint motion to delay their legal proceedings for 60 days. This motion, filed on February 10, follows the recent establishment of the SEC’s Crypto Task Force, aimed at improving oversight and regulation of the crypto market.

“The work of this task force may impact and facilitate the potential resolution of this case,” the agencies stated in their motion. With acting SEC Chair Mark Uyeda at the helm, this decision represents a potential shift in the regulatory approach toward cryptocurrency litigations.

Industry observers predict that other major crypto firms, such as Ripple, Coinbase, and Kraken, may soon follow with similar requests to the SEC. After the proposed 60-day period, a joint report from the SEC and Binance will assess the need for a continued stay or further action.

The joint motion underscores the absence of prejudice to any party involved, suggesting that pausing the case could conserve resources for both the SEC and Binance. The parties posit that an early resolution could potentially avoid a lengthy discovery process.

Analysts Predict High Odds for Litecoin ETF Approval

In financial news, Bloomberg ETF analysts are tipping a 90% chance that the SEC will approve a spot Litecoin ETF within the year. Analysts James Seyffart and Eric Balchunas contend that Litecoin’s application stands a higher likelihood of success compared to other proposed ETFs, including those for XRP, Solana, and Dogecoin, which they rate at 65%, 70%, and 75% respectively.

The analysts highlighted that Litecoin’s path to SEC approval is relatively straightforward, as the necessary forms, S-1 and 19b-4, have already been filed and acknowledged. Furthermore, the SEC’s perspective on Litecoin as a commodity may facilitate its approval process, a significant development for investors and the broader crypto market.

Alleged Hacker Faces Plea Deal in SEC X Account Breach

In related news, U.S. authorities have proposed a plea agreement for Eric Council Jr., who is accused of being involved in the hacking of the SEC’s X account in January 2024. In a filing with the U.S. District Court for the District of Columbia on February 9, federal prosecutors have outlined a forfeiture order that could require Council to pay $50,000—an amount he allegedly earned from posting misleading information.

Council is expected to plead guilty to one count of conspiracy to commit aggravated identity theft and access device fraud. He allegedly participated in a SIM swap attack that granted him and his associates control over the SEC’s X account, allowing them to disseminate false information regarding the approval of spot Bitcoin ETFs. The SEC swiftly removed the erroneous post, which falsely claimed these ETFs had been approved, only to officially announce the real approval less than 24 hours later.

Following this development, Council’s next status hearing is scheduled for May 16, where sentencing will take place.

Conclusion

As these significant events unfold, they underscore the evolving landscape of cryptocurrency regulation and the legal challenges faced by industry participants. With the SEC’s newly formed Crypto Task Force and the strong likelihood of a Litecoin ETF approval, the coming months are expected to be crucial for both regulatory clarity and market performance. Meanwhile, the legal consequences for cybersecurity breaches remind stakeholders of the ongoing risks in the digital finance environment.