- SEC and Binance seek a second 60-day pause to continue settlement talks.
- SEC softens crypto enforcement after Gensler’s departure.
- Binance faces ongoing legal battles in the U.S. and Nigeria.
The U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Binance have asked a federal judge for yet another 60-day halt to their joint legal efforts, which have been more than two years in the making.
In a motion filed on April 11 in the U.S. District Court for the District of Columbia, the parties said they are still having talks, which could change the scope of the case or even resolve the matter.
That’s because this case stayed in court until the parties, including the crypto task force, had productive discussions. These discussions have included how the crypto task force’s efforts may affect the SEC’s claims, as the filing shows.
SEC Seeks More Time to Advance Resolution Efforts
The SEC extended the time to continue pursuing internal approval for a possible settlement. Binance agreed to the further delay, arguing that it was necessary for judicial efficiency.
It is the second such request this year that the two sides have made jointly to seek an extension by two months. A stay was granted in February just after SEC Chair Gary Gensler stepped down due to his aggressive approach to regulating crypto.
Following that, longtime more crypto-friendly Commissioner Mark Uyeda was appointed acting chair.
After Gensler left the position, the SEC set up the Crypto Task Force to further develop regulatory guidance and optimize enforcement efforts.
Background of the SEC’s Case against Binance
The SEC filed 13 charges against Binance in its lawsuit filed in June last year. These charges include unregistered sales of BNB and BUSD tokens, operating investment products such as Simple Earn and BNB Vault, and facilitating a staking program.
However, Binance and its former CEO, Changpeng “CZ” Zhao, have both denied this.
It is part of a broader regulatory shift. Since taking the helm, the SEC has backed away from some high-profile enforcement actions against Coinbase, Kraken, Gemini, Robinhood, and ConsenSys, so to speak, leading the crypto industry to believe it’s approaching de facto lenience.
The CZ controversy has been bumping fresh controversy.
The Wall Street Journal reported April 11 that Zahao agreed to testify against Tron founder Justin Sun as part of his deal with the US Department of Justice.
Zhao swiftly responded to the claim, writing on X: “WSJ is really TRYING here.” They have forgotten who went to prison and who didn’t. Those who become gov witnesses don’t go to jail.”
In April 2024, CZ was sentenced to four months in prison for breaching the Anti-Money Laundering Law. Still known as the richest man to ever go to prison, he was released in September with a net worth of $60 billion.
Binance’s Legal Challenges Extend to Nigeria
Another legal development was a Nigerian court postponing to April 30 a high-profile tax evasion case against Binance.
Binance’s challenge to how court documents were served had seen the delay. According to Binance’s legal representative, Chukwuka Ikwuazom, Nigeria’s Federal Inland Revenue Service (FIRS) had not obtained proper court consent for serving outside the country.
He also claimed in written arguments that the order dating Feb. 11 that permitted substituted service is invalid. By not having a physical office in Nigeria, Binance, registered in the Cayman Islands, is not registered in Nigeria.
