The SEC Pauses Lawsuits Against Binance and Coinbase, Signaling a Possible Shift in Crypto Regulations

The U.S. Securities and Exchange Commission (SEC) is focusing on cryptocurrency cases with imminent court deadlines while pausing others, as reported by Fox Business journalist Eleanor Terrett on Feb. 19. She noted on social media platform X: “I’m told by multiple legal sources that the SEC has been prioritizing cases with imminent court deadlines, which is one explanation for why we haven’t seen pause requests in the Ripple and Kraken cases.” While some lawsuits have been delayed, others are proceeding as planned.

Key Dates

• Ripple: next court deadline on April 16
• Kraken: March 31
• Binance: paused until April 14
• Lejilex: until April 11
• Coinbase: SEC has until March 14 to respond to Coinbase’s motion for interlocutory appeal.

Potential Leadership Changes

There is speculation that the SEC may be anticipating a leadership transition as President Donald Trump’s nominee for SEC chair, Paul Atkins, moves closer to confirmation. Terrett mentioned: “It’s possible SEC leadership is expecting Donald Trump’s pick for chair Paul Atkins to be confirmed by that time.” Although there is no concrete confirmation date yet for Atkins, Terrett pointed out that Gary Gensler’s hearing occurred in March 2021, followed by his April confirmation.

Recent SEC Decisions

The SEC has temporarily halted its lawsuit against Binance for 60 days following a joint request, indicating the influence of a newly formed SEC crypto task force. This task force, governed by Commissioner Hester Peirce, aims to create a clearer regulatory framework for cryptocurrencies. This decision is perceived as part of a broader initiative to adopt a more crypto-friendly approach under the Trump administration, aiming to establish the U.S. as a global crypto hub. The SEC has also agreed to pause its lawsuit against Coinbase, enabling the company to appeal a prior ruling against its motion to dismiss the lawsuit.

Moving Forward

In the meantime, the crypto task force, Congress, and the Presidential Working Group on Digital Assets are likely addressing the regulatory voids that resulted in the current lawsuits. Additionally, President Trump recently signed an executive order to create the Presidential Working Group on Digital Asset Markets, which is focused on developing a federal regulatory framework for digital assets and assessing the potential for a national bitcoin stockpile. Chaired by David Sacks, White House AI and Crypto Czar, this group includes important figures such as the Treasury Secretary and the SEC Chair, emphasizing the administration’s commitment to advancing the U.S. as a leader in the digital asset economy.