Binance and the U.S. Securities and Exchange Commission (SEC) have jointly requested a 60-day pause on their ongoing legal battle.

According to the court filing, the break comes as the SEC sets up a new task force to establish clearer regulations for the cryptocurrency industry. Both sides agree that hitting pause could be helpful, as the task force’s work might impact how the case gets resolved.

The defendants in the case include Binance, its co-founder Changpeng Zhao, BAM Trading Services, and BAM Management US Holdings. The legal action, which began in June 2023, involves 13 charges against Binance and related entities for allegedly operating unregistered exchanges and other services. While a federal judge dismissed some charges in June 2024, many of the SEC's allegations were sustained.

The SEC, particularly under the leadership of its former chair Gary Gensler, has been active in pursuing legal action against key cryptocurrency players, such as Ripple , Coinbase (NASDAQ: COIN ), and Kraken. These actions have been met with criticism from industry experts who argue that the SEC has not provided clear guidelines on cryptocurrency services and their compliance with federal securities laws.

Following the reelection of President Donald Trump, Gary Gensler stepped down from his position last month, leading to a perceived positive turn for cryptocurrency regulation.

Trump appointed Mark T. Uyeda as acting chair and nominated Paul Atkins for the chairman role of the SEC, both of whom are considered to be crypto-friendly. Their appointments are seen as a shift away from the previous "regulation by enforcement" strategy.

As part of these changes, the SEC's crypto enforcement unit is reportedly being downsized, with key personnel being reassigned to other departments.

SEC Commissioner Hester Peirce, who is heading the new crypto task force, expressed the group's commitment to clarifying which crypto assets are considered financial securities and to appropriately categorize certain tokens as "non-securities." The task force's focus is on proactive regulation, providing clear guidelines, and judicious use of enforcement resources. The parties involved in the Binance case are expected to submit a joint status report at the conclusion of the 60-day stay to determine if an extension is necessary.

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