Leading crypto exchange Binance has come to an agreement with the United States Securities and Exchange Commission (SEC) to request that their ongoing legal battle be halted for 60 days. The latest deal coincides with the SEC’s new chairman’s stance on crypto adoption.
Two-Year-Long Legal Tussle
In June 2023, the SEC slapped Binance and its CEO, Zhao, with a lawsuit, accusing them of running unregistered exchanges, broker-dealers, and clearing agencies and misrepresenting how trading works on the platform. They also claimed that Binance violated rules by selling BNB and BUSD tokens without proper registration.
Recently, the SEC updated the lawsuit, adding fresh accusations that Binance got tangled up in securities transactions. These include reselling tokens from other creators, developers selling their tokens, initial exchange offerings (IEOs), paying employees with BNB, and putting crypto into the Binance Simple Earn program.
After Trump won the presidency, the SEC set up this new crypto task force led by Commissioner Hester Peirce. The goal is to create a solid set of rules for crypto-related activities, marking a shift from the past administration’s strict enforcement. This new direction aims to provide more explicit guidelines while encouraging innovation in the crypto world.
Regulatory Shift Paves the Way for Relief
The SEC seems to be changing its approach to crypto regulations. With the former chairman, Gary Gensler, who is known for being strict about crypto, out of the picture, the new Chair, Mark Uyeda, is taking a more cooperative approach. This means the SEC wants to work with the industry to develop practical rules supporting innovation and keeping investors safe.
Other big crypto exchanges are also experiencing legal shifts. Coinbase just scored a good court win, with a ruling that sided with them in a case regarding securities classification. This shows that the courts recognize the need for rules that better suit the industry. Meanwhile, Coinbase CEO Brian Armstrong and other notable industry leaders are pushing for more explicit regulations.
