U.S. Judge Pauses SEC Lawsuit Against Binance for 60 Days

• A U.S. federal judge has paused the SEC’s lawsuit against Binance for 60 days following a joint request from both parties.
• The SEC has formed a task force, led by Hester Peirce, to reassess its regulatory approach, potentially influencing Binance’s case.
• Paul Atkins has been nominated to replace Gary Gensler as SEC chair, signaling a possible shift in crypto regulation policies.

A U.S. federal judge has temporarily halted the Securities and Exchange Commission’s (SEC) lawsuit against Binance, granting a 60-day pause. The decision follows a joint request from both parties, citing the formation of a new SEC task force that could impact the case’s resolution.

Court Grants Temporary Halt in Binance Case

Judge Amy Berman Jackson of the U.S. District Court approved the request, placing the lawsuit on hold. The decision comes after the SEC and Binance acknowledged that the newly formed task force may influence the case’s outcome. Both parties have been directed to submit a joint status report by April 14 to determine whether the pause should continue or if the case should proceed.

The SEC’s lawsuit alleges that Binance engaged in market manipulation, misrepresented its compliance measures, and mishandled customer funds. The case also involves Zhao, who stepped down as CEO and pleaded guilty to separate criminal charges. The regulator’s enforcement action against Binance is part of a broader effort to oversee cryptocurrency firms operating within the U.S.

The SEC has established a new task force to reassess its approach to cryptocurrency regulation. Led by Commissioner Hester Peirce, the team is reviewing past enforcement actions and considering potential regulatory adjustments. The agency’s recent filing states that the task force’s work could impact the resolution of Binance’s legal battle.

Changes in SEC Leadership and Policy Implications

President Donald Trump has nominated Paul Atkins to replace Gary Gensler as SEC chair. Atkins, a lawyer known for advocating financial innovation, is expected to take a different approach to crypto regulation. Gensler, who served as chair since 2021, pursued aggressive oversight of cryptocurrency markets, describing them as lacking regulatory compliance.
Under his confirmation Atkins would probably guide the SEC toward new regulatory paths. Under President Trump’s economic initiatives the appointment exists as part of his plan to establish the United States as a center for crypto business operations. The new SEC leader might bring shifts in enforcement policies which will impact numerous cases further than Binance.