Crypto just received another signal that US regulatory crackdown is declining. According to a court application Monday, the Securities and Exchange Commission has agreed to suspend the lawsuit for 60 days after years of aggressive legal campaigning against vinanence.
In the filing, lawyers for the SEC and Binance point out that a new cryptographic task force, established on January 21 by SEC Chairman Mark Uyeda, will affect the lawsuit and “help potential resolution of this case.” did.
The joint proposal is interesting for an agency that was once the biggest cop in cryptography. And there’s even more evidence that Trump’s administration will become a more cryptic-friendly system than Biden’s.
“We are grateful to interim chairman Weda for his thoughtful approach to ensuring that digital assets receive the right legislative and regulatory focus in this new golden age of blockchain.” a Binance spokesperson said. “The SEC case has always been without merit. We are keen to keep this behind us and keep our focus on maintaining the safest, licensed and reliable exchange in the world.”
The SEC declined to comment.
Under former chairman Gary Gensler, the SEC launched a barrage of lawsuits against some of the most well-known companies in cryptography.
Regulators traded Kraken with Gemini, the encrypted entrepreneur Justin San, and in June 2023 targeted perhaps two of the industry’s most well-known companies: Binance and Coinbase. In its lawsuit against Binance, the SEC allegedly argued that the exchange violated U.S. securities laws with 13 separate charges.
In November 2023, the Department of Justice won a $4.3 billion settlement with vinance on the company’s alleged violations of US money laundering laws and economic sanctions. The SEC did not participate in the settlement and did not shelve the lawsuit against Binance.
The heart of the institution’s complaints was that, besides Bitcoin, cryptocurrencies were similar to securities. Therefore, according to the SEC legal analysis, cryptocurrencies were subject to the same laws that control stocks and bonds.
The crypto industry has long been vehemently opposed this assessment, and in the preliminary stages of the 2024 election, the crypto industry launched a full-scale lobbying campaign to select custody politicians. According to Crypto researcher Molly White, the lobbyists donated a total of $133 million to help shake up the 2024 election.
As cryptography became a voting issue, Trump has become more vocal in supporting the industry. At the Bitcoin Conference in July, he declared that he was “President of Pro Bitcoin.”
The story continues