Investing.com -- A federal judge in Washington, D.C., has paused the U.S. Securities and Exchange Commission's (SEC) civil lawsuit against Binance, the world's leading cryptocurrency exchange, for 60 days. The decision was made on Thursday following a joint request from the SEC and Binance.
The pause comes in the wake of the creation of a new SEC task force dedicated to reviewing cryptocurrency regulation. The task force, which was established last month, is led by Republican Commissioner Hester Peirce, a known supporter of cryptocurrency. Both parties involved in the lawsuit believe that the task force's review may influence and potentially lead to the resolution of the case.
The SEC launched the lawsuit against Binance and its founder, Changpeng Zhao, in June 2023. The regulator accused the exchange of artificially inflating trading volumes, misusing customer funds, and providing misleading information about its surveillance controls.
In the meantime, President Donald Trump has expressed his intent to position the United States as a global center for the cryptocurrency industry. As part of this effort, he has nominated Paul Atkins, a Washington-based lawyer with a reputation for being crypto-friendly, for the position of SEC chair. If confirmed, Atkins would replace Gary Gensler, who faced industry pushback for advocating for stricter cryptocurrency regulation and for his efforts to curb what he referred to as the industry's "Wild West" mentality.
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