Federal Judge Puts SEC Lawsuit Against Binance on Hold for 60 Days
Washington, D.C. – February 13, 2024
A federal judge in Washington, D.C., has granted a 60-day pause on the U.S. Securities and Exchange Commission’s (SEC) civil lawsuit against Binance, the world’s largest cryptocurrency exchange. U.S. District Judge Amy Berman Jackson issued the order on Thursday following a joint request from both the SEC and Binance.
The motion for a delay emerged after both parties acknowledged that a recently established SEC task force dedicated to reviewing cryptocurrency regulations could significantly influence the upcoming legal proceedings. This task force, created in January 2024, is led by Hester Peirce, a Republican Commissioner known for her pro-cryptocurrency stance.
The SEC had initiated legal action against Binance and its founder, Changpeng Zhao, in June 2023. The lawsuit alleges that Binance engaged in deceptive practices, including artificially inflating trading volumes, misappropriating customer funds, and providing misleading information about its surveillance mechanisms designed to protect investors.
The current developments come at a time of heightened scrutiny over cryptocurrency regulations in the United States. Former President Donald Trump has made it a priority to position the U.S. as a leading center for the cryptocurrency industry. As part of his agenda, he has nominated Paul Atkins, a Washington lawyer recognized for his favorable views on cryptocurrency, to succeed Gary Gensler as SEC chair. Gensler has faced significant pushback from the cryptocurrency sector due to his advocacy for stricter regulatory measures aimed at curbing what he termed the “Wild West” mentality prevalent in the industry.
As the court prepares to explore potential resolutions influenced by the newly formed task force, observers in the cryptocurrency community are keenly anticipating the implications this case and regulatory review may have on the sector’s future.
Reporting by Jonathan Stempel in New York; Editing by Nia Williams
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