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The Securities and Exchange Commission (SEC) and Binance have filed a joint motion to pause their ongoing lawsuit for an additional 60 days. This request comes after an initial 60-day pause that was granted previously, during which both parties have engaged in what they describe as "productive discussions." The extension is sought to allow more time to finalize an agreement and consider all relevant policy implications.

This development mirrors a similar agreement reached between the SEC and Ripple, indicating a broader trend of the SEC seeking to resolve high-profile enforcement actions through negotiated settlements rather than prolonged litigation. The SEC has been actively closing cases against prominent exchanges, including Coinbase and Kraken, and now appears to be preparing to drop its lawsuit against Binance.

The motion filed today states, "Pursuant to the Court’s February 13, 2025 Minute Order, Plaintiff Securities and Exchange Commission and Defendants Binance Holdings Limited… and Changpeng Zhao submit this joint status report and jointly move to continue to stay this case for a period of 60 additional days." This filing suggests that significant progress has been made in the discussions between the two parties.

Binance, the world’s largest crypto exchange, has been embroiled in this legal battle since 2023. The SEC initially sued Binance in June of that year, alleging serious violations of securities laws and accusing the exchange of deliberately misleading regulators. These allegations have led to a protracted legal conflict, but the recent change in leadership at the SEC may signal a shift in approach.

Under the new Chair, Paul Atkins, the SEC has prioritized a more amicable approach to crypto regulation. Before his confirmation, the SEC, under Acting Chair Mark Uyeda, had filed a joint request with Binance to pause the lawsuit 60 days ago. The current filing, while slightly shorter than the previous one, indicates that the discussions have been fruitful and that both parties are close to reaching a resolution.

The SEC’s recent actions suggest a strategic shift towards resolving disputes through negotiation rather than litigation. This approach not only saves court resources but also allows for more flexible and tailored solutions that can address the unique challenges posed by the crypto industry. The extension of the pause in the Binance lawsuit is a clear indication of this new direction, as both parties work towards a mutually beneficial agreement.