The SEC and Binance have both asked for a 60-day pause in their continuing legal dispute so that they can keep up with regulatory changes.
Summary
The US Securities and Exchange Commission (SEC) and Binance have requested a 60-day delay in their ongoing legal dispute to keep up with regulatory changes. The proposal was submitted on February 10 and aims to temporarily stop proceedings while the creation of the new Crypto Task Force by the SEC takes place. The SEC filed a complaint against Binance, its US subsidiary, BAM Management US Holdings, and Changpeng “CZ” Zhao, alleging that Binance had broken U.S. securities laws by functioning as an unlicensed exchange. The SEC believes a temporary hold would be the best option due to the possibility of regulation changes. After 60 days, the parties will submit a joint status report to decide whether the case should continue or be postponed again.
The U.S. Securities and Exchange Commission (SEC) and Binance have both requested a 60-day delay in their lawsuit.
The proposal aims to put a temporary stop to the proceedings while regulatory changes take place, namely the creation of the new Crypto Task Force by the SEC.
In June 2023, the SEC filed a complaint against Binance, BAM Trading Services (its U.S. subsidiary), BAM Management US Holdings, and Changpeng “CZ” Zhao (the former CEO). The SEC asserted that Binance violated U.S. securities laws by operating as an unlicensed exchange.
The SEC charged the firm with deceiving investors, mixing client money, and not properly registering as a securities exchange. Binance has claimed that it has done nothing illegal and that the SEC does not have the legal authority to properly oversee digital assets.
What Is the Reason for the 60-Day Stay?
Mark T. Uyeda, the new Acting Chairman of the SEC, has established a Crypto Task Force to provide a more precise regulatory framework for digital assets, as stated in the motion.
According to the motion, “The activity of this task group may affect and ease the future conclusion of this matter.”
Due to the possibility of regulation changes, both Binance and the SEC think that a temporary hold would be the best option for everyone concerned.
The SEC’s request states, “A stay might save the parties resources because, if an early settlement could be achieved, it would avoid the need to continue merits discovery.”
Furthermore, the stay would provide the court the opportunity to postpone deciding on Binance‘s current requests to dismiss the SEC’s action.
What Occurs after 60 days?
After the 60 days are up, the parties will submit a joint status report that explains whether the case should continue or whether it should be postponed again.
A spokesman for Binance commented to TheStreet Crypto, saying, “We are appreciative to Interim Chairman Uyeda for his thoughtful approach to ensure digital assets get the right legislative and regulatory emphasis in this new, golden age of blockchain in the U.S. and throughout the globe.” The SEC’s complaint has never had any validity, and we are looking forward to moving on from this and continuing to work on making Binance the most safe, licensed, and trusted exchange in the world.”
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The US Securities and Exchange Commission (SEC) and Binance have requested a 60-day delay in their ongoing legal dispute to keep up with regulatory changes. The proposal aims to put a temporary stop to proceedings while the creation of the new Crypto Task Force by the SEC takes place. The SEC believes a temporary hold would be the best option due to the possibility of changes in regulations. After the 60-day period, the parties will submit a joint status report to decide whether the case should continue or be postponed again…[Also Read]
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