A federal judge has decided to pause the Securities and Exchange Commission’s (SEC) lawsuit against Binance, a leading cryptocurrency exchange, for a period of 60 days. This decision came after a joint request from both parties involved.

In a recent joint motion, it was emphasized that the creation of a new task force to evaluate cryptocurrency regulations could potentially influence the eventual resolution of the case. The SEC established this task force last month, spearheaded by a commissioner known for her support of digital currencies. This move marks one of the initial actions taken by the SEC under interim leadership, following the departure of the previous chair.

The appointment of a permanent SEC chair is pending, with a candidate nominated by the former president recognized as favorable toward the crypto market. This contrasts with the actions taken by the previous administration, which initiated numerous high-profile investigations into cryptocurrency firms.

The SEC’s legal actions against Binance, initiated in mid-2023, allege that the exchange engaged in deceptive practices, including inflating trading volumes and mishandling customer funds. Defenders of Binance have consistently stated that the charges are unfounded and express a desire to resolve the issue so that the exchange can maintain its reputation as a secure and licensed platform.

In related legal matters, the cryptocurrency platform has faced actions from other regulatory bodies, resulting in significant financial settlements totaling over $7.1 billion. These settlements required the company to withdraw its operations from the US market and resulted in notable leadership changes within the organization.

At present, the SEC appears to be re-evaluating its approach to cryptocurrency enforcement. Reports indicate that there is a scaling down of its enforcement division, which has been staffed by over 50 attorneys dedicated to cryptocurrency-related cases.