Binance, SEC Pause Legal Battle for Crypto Clarity

The legal proceedings between the U.S. Securities and Exchange Commission (SEC) and Binance (BNB) have been temporarily paused for 60 days. This pause will allow both parties to await an update from the recently established Crypto Task Force. According to a joint motion filed on February 10, the stay could be extended based on the outcome of the Task Force's report.

The motion stated, "At the end of the 60-day stay period, the Parties propose that they will submit a joint status report, including whether a continuation of the stay is warranted." The parties argued that the task force's report, designed to provide more regulatory clarity in the sector, would directly impact or help resolve the case.

While the outcome of the stay remains uncertain, Alex Thorn, Head of Research at Galaxy Digital, believes that the update would clarify the security status of most altcoins by mid-April. He stated, "Now the SEC and Binance have filed for a 60 day stay in their litigation. Effectively asking the court for a pause while they re-evaluate. 60 days from yesterday’s stay request filing is April 12. We think the SEC will have decided their new view on the security status of cryptos by then."

In other developments, Binance has denied allegations that it sold its assets, including Bitcoin and Ethereum reserves. The firm added that user funds were safe and that the alleged 'ell-off' was part of an accounting adjustment. Its statement read, "Binance is not selling assets. This was simply an adjustment in the Binance treasury’s accounting process. User funds are SAFU, as always."

Interestingly, the alleged sell-off by the exchange was first reported by crypto analyst Kuai Dong, citing data from. Dong claimed that the exchange had sold nearly all the profit made from major tokens, including BTC, ETH, SOL, USDT, and transferred them to USDC. Part of his analysis read,