These two have been battling it out in court, but now have decided to take a 60-day timeout. Why?
Because regulators are trying to figure out the crypto rules, and this could totally change how digital assets are watched over in the U.S.
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Joint motion for a breather
On February 10, the SEC, along with Binance, BAM Trading Services Inc., BAM Management US Holdings Inc., and Changpeng Zhao, filed a joint motion asking the court to put their legal fight on hold for 60 days.
They submitted this to the U.S. District Court for the District of Columbia. Basically, they want to chill while the SEC’s new crypto task force gets its act together and creates some regulatory guidelines.
The Hester Peirce task force
This task force, started by Acting SEC Chairman Mark T. Uyeda and led by Commissioner Hester Peirce, a known crypto-supporter, could seriously influence the Binance case.
Even Binance and CZ agreed that pausing the lawsuit would be a good idea, potentially leading to a quicker resolution.
BAM Trading Services Inc. and BAM Management US Holdings Inc., which run Binance.US, are also caught up in this mess. The SEC claims they, along with Binance and CZ, broke securities laws.
Why the pause makes sense
The motion argues that this pause will save time and money for everyone involved, including the court.
If they can reach an agreement during this time, they might not even need to go through all the legal discovery and court reviews.
Both sides are clear that this is just a temporary break and won’t mess with existing court deadlines.
If the court says yes to the pause, both sides will give a status report after 60 days to see if they need more time.
The idea is that the SEC’s new crypto rules could help settle the allegations against Binance and its buddies, and more importantly, the end result of this case could set a standard for how all crypto companies are regulated in the U.S.
