Binance and the US Securities and Exchange Commission (SEC) filed a joint motion requesting a 60-day stay in their ongoing legal case.
This comes under the leadership of the SEC’s acting chair, Mark Uyeda, who formed a new crypto task force on Feb. 4. Both Binance and the SEC believe this task force could influence the outcome of the case, court documents revealed today.
The motion, filed in a US district court, reportedly says, “The work of this task force may impact and facilitate the potential resolution of this case.” The request asks for a pause in proceedings until both parties can determine whether continuing litigation makes sense after the task force’s work progresses, then a joint status report will be submitted at the end of the 60-day period.
The SEC had accused Binance, including its CEO Changpeng Zhao, BAM Trading Services Inc., BAM Management US Holdings Inc., and Binance Holdings Ltd., of more than one violation, including of course trading unregistered securities and misusing customer assets. Binance denied the allegations and went to court to challenge the SEC’s claims.
How the motion will work
According to the motion, both sides agree that pausing the case could save resources. The filing says that the ongoing discovery process, where both sides exchange evidence, may become unnecessary if a resolution can be reached.
“A brief stay will promote the efficient use of the court’s resources,” the motion said. This means the court won’t have to spend time ruling on Binance’s pending motions to dismiss the amended complaint filed against them.
Courts have wide discretion to pause cases, and the law recognizes that certain criteria must be met for a stay to be granted. According to Clinton v. Jones and other precedent cases, courts typically evaluate three factors: harm to either party if the stay is denied, whether the requesting party has a legitimate need for the pause, and whether a stay would streamline judicial proceedings.
If the 60-day break is granted, the pause could delay ongoing legal procedures, like the court’s review of Binance’s dismissal requests. For Binance, this stay is an opportunity to regroup and reduce legal exposure during the discovery phase which, in cases like this, often includes producing internal documents, emails, and other materials, which could reveal sensitive company operations.
The court documents go into detail about why both sides see this stay as necessary, saying, “There is no prejudice to any party here, and a stay could save the Parties resources because, if an early resolution could be reached, it would obviate the need to continue merits discovery.”
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