The SEC and Binance have jointly requested to pause their long-standing legal dispute for another two months. According to court documents filed on April 11, both parties described recent discussions as 'productive' and noted that ongoing progress could affect the direction of the case.
Ongoing negotiations have led to a second legal pause.
The joint request submitted to the U.S. District Court for the District of Columbia indicates that both the SEC and Binance believe it is valuable to continue discussions outside of court.
The SEC initiated the request for delay, and Binance agreed.
This extension will last for 60 days.
The U.S. Securities and Exchange Commission is seeking internal approval for any potential solutions or changes to the case.
Both parties stated that the suspension is beneficial for 'judicial economy', meaning it can help the court avoid unnecessary litigation while negotiations continue.
This is the second time in 2025 that the judge has been asked to approve such a delay. The last 60-day delay was granted in February.
The special task force and leadership changes affect the direction of the case.
A major reason for the suspension is the newly formed cryptocurrency special task force by the U.S. Securities and Exchange Commission, both parties believe that this task force may reshape the trajectory of the litigation.
The task force was established on January 21, the day after Gary Gensler stepped down as SEC chair.
Mark Uyeda, known for supporting cryptocurrencies, has taken over as acting chair.
The task force's mission includes clarifying regulations, providing pathways for registration, and optimizing enforcement actions.
As these changes occurred within the SEC, the agency also dropped several high-profile lawsuits against cryptocurrency companies such as Coinbase, Kraken, Gemini, Robinhood, and Consensys.
Litigation timeline and allegations.
The legal dispute between the SEC and Binance began in June 2023. The agency made 13 allegations, including:
Unregistered sale of BNB and Binance USD tokens.
Improprieties related to its staking program and products like Simple Earn and BNB Vault.
Binance's U.S. platform and CEO Changpeng Zhao are also named in the lawsuit.
At the end of the current 60-day period, both the SEC and Binance plan to submit another joint status update to inform the court of any progress.