Binance and SEC Seek 60-Day Pause as Crypto Settlement Talks Gain Momentum

The SEC originally filed suit against Binance in June 2023, accusing the exchange and its founder, Changpeng “CZ” Zhao, of operating an unregistered securities platform, commingling customer funds, and engaging in deceptive practices to inflate trading volumes. The case quickly became one of the most closely watched enforcement actions in the crypto space, with regulators pushing for greater oversight of digital asset markets.

However, the regulatory landscape has shifted significantly since then. With President Donald Trump returning to office and appointing Mark Uyeda as acting chair of the SEC, the Commission has softened its tone. In February 2025, Binance and the SEC jointly agreed to a 60-day litigation pause, citing the need for dialogue amid the agency’s evolving stance on digital asset oversight.

That initial pause has now reached its conclusion, and both parties have once again requested more time—this time due to what they describe as “productive discussions.” The SEC’s new crypto-focused task force, established earlier this year, is playing a central role in these talks. According to the court filing, the task force is working to craft clearer and more industry-aligned regulatory frameworks that could render aspects of the litigation unnecessary.

“Productive discussions between the parties continue,” the filing reads, adding that both sides believe a further 60-day stay is “appropriate and would serve the interests of judicial economy.” The court has not yet ruled on the request, but given its previous approval of the litigation pause, a favorable response appears likely.

This extended stay comes at a pivotal moment for the crypto industry. Regulatory clarity has long been a missing piece of the U.S. digital asset puzzle. Under former SEC Chair Gary Gensler, the Commission adopted a hardline enforcement approach that critics said stifled innovation and blurred legal definitions of digital tokens. In contrast, Uyeda has signaled a willingness to engage more constructively with the industry, particularly on issues like decentralized finance DeFi, stablecoins, and exchange registration.

For Binance, the stakes are enormous. The exchange has faced regulatory pressure in multiple jurisdictions and saw its founder, CZ, step down and admit to compliance failures related to U.S. anti-money laundering regulations in a separate case last year. in a separate case last year. While the current SEC lawsuit is civil, it carries the potential for significant penalties or business restrictions if it proceeds to judgment.

While no details of the private negotiations have been made public, some speculate the talks may center on reclassifying tokens, establishing a sandbox for compliant crypto offerings, or creating a framework for exchanges to register in a way that accounts for the unique characteristics of blockchain platforms.

Meanwhile, Binance has continued to operate in the U.S. under a compliance monitor appointed as part of its 2023 Department of Justice settlement. The firm’s ability to maintain operations while undergoing scrutiny has become a case study in regulatory adaptation.

The court is expected to issue a decision on the extension request soon. Both Binance and the SEC have agreed to provide a formal status update at the conclusion of the proposed 60-day period. If successful, these ongoing talks could serve as a model for future regulatory engagement with other crypto firms.

As the SEC’s crypto task force continues its work behind the scenes, the industry is watching closely, hoping that the outcome of this case sets a precedent not just for Binance, but for a more coherent and innovation-friendly regulatory regime in the United States.