Binance and SEC Call Temporary Truce, Ripple and Coinbase Could Follow

Key Takeaways

• The SEC has paused its lawsuit against Binance for 60 days.
• The new SEC administration is seeking clearer regulatory guidelines on security rules.
• Following Binance, the SEC could pause lawsuits against other crypto companies, including Ripple, Coinbase, and Kraken.

The Securities and Exchange Commission (SEC) has agreed to pause its litigation against Binance for the next 60 days.

The pause follows a joint motion filed by both the SEC and Binance, citing the potential impact of the newly formed SEC crypto task force.

This delay comes as the agency, under new leadership, seeks clearer regulatory guidelines in the crypto space.

SEC Pauses Lawsuit Against Binance

The SEC’s decision to pause the lawsuit is seen as part of a broader effort to address ambiguities surrounding crypto regulations.

Both parties agreed that the work of the SEC’s crypto task force could influence the outcome of the case. The task force is expected to bring about regulatory changes in the coming months, which could help resolve the dispute.

After the 60-day pause, the SEC and Binance will file a joint status report to decide whether to extend the stay further.

Background on SEC’s Charges Against Binance

In 2023, the SEC filed 13 charges against Binance , accusing the exchange of violating securities laws. These charges included operating unregistered exchanges, misrepresenting trading oversight on Binance.US, and the unregistered offer and sale of securities.

However, the SEC’s approach has evolved over time.

In 2024, the agency amended its suit after facing challenges in its lawsuit against Ripple.

It dropped the use of the term “crypto asset securities,” signaling a shift in its strategy.

Now, under new leadership, the SEC is revisiting its approach to securities lawsuits, potentially signaling a shift in how it handles cases involving crypto companies.

Ripple, Coinbase, and Kraken: Are More Pauses Coming?

Following the pause in the Binance case, similar actions may be in store for other crypto companies facing securities lawsuits. According to Fox crypto reporter Eleanor Terrett , the SEC could pause lawsuits against Ripple, Coinbase, and Kraken.

Ripple is nearing the end of its ongoing lawsuit, which the SEC filed in December 2020. The court ruled that the sale of XRP to retail investors did not violate securities laws, but its institutional sale was deemed a violation.

Coinbase and Kraken, which are also involved in securities-related lawsuits, are awaiting similar resolutions. The SEC has accused both exchanges of offering security tokens without proper registration.

For Coinbase, the battle against the SEC has already led to a notable victory, with the exchange pushing the agency to adopt clearer regulations. The outcome of this case could significantly impact the future of crypto regulation in the U.S.

The Role of the New SEC Crypto Task Force

At the heart of this shift is the new SEC crypto task force, led by Hester Peirce, a pro-crypto commissioner.

The task force has been tasked with developing clearer guidelines for the crypto industry, particularly regarding the classification of crypto assets as either securities or commodities.

The task force has until the end of 2025 to resolve this critical issue, which could reshape the regulatory landscape for the entire sector.

As the SEC navigates these complex issues, the pause in litigation against Binance may signal a broader shift in how the agency handles crypto cases.

It remains to be seen whether other lawsuits will follow suit, but the growing push for clearer regulations indicates that significant changes could be on the horizon for the crypto industry.