🔥 SEC & Binance: “Time-Out” in Crypto Showdown! 🔥

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In a twist worthy of the most convoluted bureaucratic farce, the US Securities and Exchange Commission (SEC) and the globe-trotting crypto exchange Binance have, with a dramatic flourish, filed a joint motion to press the pause button on their legal tussle for a full two months. Why, you ask? Well, it seems the regulatory agency is undergoing changes that are as mysterious as they are profound.

SEC & Binance: The Pause That Refreshes?

On a Tuesday that felt like any other, FOX Business journalist Eleanor Terrett reported that the SEC and Binance had decided they needed a 60-day breather from their regulatory boxing match. The joint motion, dated February 10, 2025, argues with the utmost seriousness that the litigation deserves a stay due to the birth of the SEC’s Crypto Task Force, led by the illustrious SEC Commissioner Hester Peirce.

The two parties, in a rare moment of agreement, believe that this Task Force, conjured into existence by the Commission’s acting chair, Mark Uyeda, to craft a regulatory framework for crypto assets, could “impact and facilitate the potential resolution of this case.” Indeed, a momentous task!

Back in June 2023, the SEC launched a lawsuit against Binance, claiming that the exchange, its US affiliate, BAM Trading Services Inc., and the former CEO, Changpeng Zhao, were peddling unregistered securities and operating in the US as if they were in a lawless wilderness.

The watchdog barked loudly, asserting that Binance’s lack of registration allowed it to run a trading platform as wild and unregulated as a medieval marketplace, exposing US investors to risks as great as the unknown depths of the sea and leading them astray with promises of security and regulatory oversight.

Binance, not to be outdone, filed a motion to dismiss the lawsuit, claiming the SEC had overstepped its bounds with the enthusiasm of a zealous guard. But Judge Amy Berman Jackson, in a ruling as firm as a fortress, denied the motion in July 2024. Yet, in a partial victory for Binance, she dismissed some of the Commission’s main claims, as if swatting away flies.

The court ruling cast aside claims regarding the secondary market sales of BNB tokens, the classification of Binance USD (BUSD) stablecoin as an investment contract, and the bold assertion that crypto tokens themselves are securities. Truly, a storm in a teacup!

Nevertheless, Judge Jackson allowed the case to proceed with claims about the exchange’s staking program, BNB’s Initial Coin Offering (ICO) sales, and alleged violations of the Securities Act. The drama continues!

More Delays on the Horizon?

According to the Monday court document, the SEC proposed a brief stay with Binance, which the exchange agreed to, deeming it “appropriate and in the interest of judicial economy.” A noble cause, indeed!

The joint motion boldly declares that the stay could “save the parties resources” if an early resolution is reached, sparing them the need to continue the merits discovery. A potential saving of resources? What a novel idea!

Furthermore, this brief stay will promote the efficient use of the Court’s resources, as a resolution would obviate the need for the Court to resolve the Defendants’ pending Motions to Dismiss the Amended Complaint. Efficiency in the court? A revolution!

After the 60-day stay, Binance and the SEC plan to submit a joint status report, including whether a continuation of the stay is warranted. The plot thickens!

Terret alleges that the joint stay motion is the first requested pause on crypto litigation since Uyeda took the reins on January 20. She also expects to see other non-fraud causes, such as Ripple, Coinbase, and Kraken, follow suit and request a motion stay. The domino effect begins!

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2025-02-12 08:44