"US SEC and Binance Request Additional 2-Month Litigation Delay... Possibility of Settlement in Focus"

Minseung Kang

Summary

The US SEC and Binance have requested an additional two-month delay in the ongoing litigation, highlighting the possibility of a potential settlement.
This request was made due to productive discussions by the Crypto Taskforce between the two sides, and the need for time to adjust the scope of litigation and internal procedures.
There is analysis suggesting that this delay request is part of a movement to ease conflicts, as the SEC has previously withdrawn some lawsuits against certain virtual asset companies.

The U.S. Securities and Exchange Commission (SEC) and global virtual asset (cryptocurrency) exchange Binance have jointly requested an additional two-month delay in the ongoing litigation from the court.

On the 12th, virtual asset specialized media Cointelegraph reported, "The SEC and Binance have requested an additional two-month delay in the legal battle that has been ongoing for about two years." The media added, "It seems to be influenced by productive discussions between the two sides, centered around the newly established 'Crypto Taskforce' right after former SEC Chairman Gary Gensler resigned."

The SEC explained that this request is due to the need for time for internal procedures such as adjusting the scope of litigation or approving potential settlement plans. If this request is accepted, the litigation between Binance and the SEC will be delayed for the second time this year by 60 days. Previously, the court accepted the first deferral request in February.

Analysts suggest that the SEC's recent decision is also linked to the recent easing of conflicts with virtual asset companies. The SEC has recently withdrawn some lawsuits against Coinbase, Kraken, Gemini, Robinhood, and ConsenSys.

Meanwhile, in June 2023, the SEC initiated legal proceedings against Binance, its subsidiary BinanceUS, and former CEO Changpeng Zhao, alleging a total of 13 charges related to the unregistered sale of BNB and BUSD securities, staking programs, and Simple Earn.

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