• Binance and the SEC have filed for a 60-day stay on pending lawsuits, indicating a potential shift in regulatory strategy.
• The SEC’s newly formed task force aims to review cryptocurrency regulations in response to changing political leadership.
• Critics argue that delaying the lawsuit could lead to neglect of regulatory duties.

Binance, the prominent cryptocurrency exchange, and the United States Securities and Exchange Commission (SEC) have jointly requested a federal judge to pause ongoing litigation against the platform. This request comes amidst a potential shift in regulatory stances under the Trump administration, with hopes for a more favorable approach towards the crypto industry. According to a recent court filing, the motion for a 60-day stay is the first substantial indication that the SEC intends to moderate its previous aggressive enforcement tactics that were in place under the Democratic administration. The motion cites the establishment of a new SEC task force tasked with reevaluating crypto regulations, formed last month, which may “impact and facilitate the potential resolution of this case” involving allegations against Binance and its founder Changpeng Zhao. This is seen by some analysts as an early sign of the SEC pivoting towards a more crypto-friendly regulatory environment, aligned with President Trump's goal of making the U.S. a global leader in cryptocurrency. Previously, the SEC had asserted that firms like Binance were listing crypto tokens that resemble securities, leading to significant regulatory actions. As stated by a spokesperson for the SEC, the agency had refrained from offering comments beyond the court submissions. At a recent event hosted by the Federalist Society, Republican SEC Commissioner Hester Peirce remarked on the agency's approach, stating, “We’ve been approaching it backwards, using our enforcement division to set policy,” indicating a need for a more balanced regulatory framework. In June 2023, the SEC filed a lawsuit against Binance and Zhao, accusing them of actions including artificially inflating trading volumes and misappropriating customer funds. Following the lawsuit, Binance described the SEC's actions as lacking merit and expressed its desire to resolve these issues expediently, highlighting its commitment to maintaining a secure exchange platform. However, notable criticism has emerged regarding the request for a stay. Former SEC official Corey Frayer voiced concerns, saying, “Delaying a case where the CEO pled guilty to criminal charges may culminate in a full dereliction of duty,” emphasizing the imperative need for regulatory diligence in such cases. It's worth noting that Binance acknowledged a violation of anti-money laundering laws last November, further complicating its regulatory profile, while Zhao has faced legal repercussions including prison time related to these violations. As the political landscape shifts, the SEC, under the leadership of crypto-aligned appointee Paul Atkins—awaiting confirmation by Congress—has already started altering its focus. Initiatives such as reallocating crypto enforcement personnel and tightening oversight protocols reflect a significant change from previous regulatory strategies, which former SEC Chair Gary Gensler had termed the “Wild West” of crypto. During the event, Peirce acknowledged that although the industry poses challenges, it also embodies “the greatness of that American spirit that moved west” which regulators need to consider moving forward. For more details, visit the original articles from [Al Jazeera](https://www.aljazeera.com/economy/2025/2/11/in-change-in-crypto-enforcement-sec-and-binance-seek-pause-in-lawsuit), [Reuters](http://reuters.com/markets/currencies/binance-sec-request-pause-legal-battle-trumps-crypto-policy-takes-shape-2025-02-11/), and [South China Morning Post](https://www.scmp.com/tech/blockchain/article/3298310/binance-us-regulator-seek-pause-legal-battle-trump-draws-crypto-policy).