SEC REQUESTS A PAUSE IN LEGAL BATTLE WITH BINANCE AS THE AGENCY ADAPTS A CRYPTO-FRIENDLY STANCE

The U.S. Securities and Exchange Commission is seeking to pause its high-profile lawsuit against the cryptocurrency exchange Binance as the regulator tries to present itself as more cryptofriendly under a new administration.

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Binance and the SEC filed a joint motion Monday asking for a 60-day stay in a lawsuit the regulator filed with significant fanfare two years ago under its previous chairman, Gary Gensler.

Monday’s filing in the U.S. District Court for the District of Columbia said the SEC approached Binance asking for the pause. The regulator said the work of a new crypto task force launched by Acting Chairman Mark Uyeda that’s supposed to improve ties to the crypto industry “may impact and facilitate the potential resolution of this case.”

The filing is the first “tangible action in existing enforcement actions that recognizes a change in direction of the agency,” said Carol Goforth, a distinguished professor at the University of Arkansas School of Law.

Binance is the world’s largest cryptocurrency exchange – a digital marketplace where customers can buy, sell and store different types of crypto -- and the SEC’s lawsuit drew considerable attention when first filed.