Getting on the wrong side of the US SEC has long been the biggest fear of many crypto projects. With the new administration in office, this reality is changing.
BNB, the native token of the Binance exchange, has surged following news that its legal battle with the US regulator might soon be over.
On Tuesday, February 11, Binance’s BNB token was up more than 5%, reaching a high of $644.32, after a key update in its legal case. The surge came on news that its protracted legal battle with the US Securities and Exchange Commission might soon be over.
Notably, on Monday, Binance and the SEC filed a joint motion to pause their ongoing legal battle for 60 days. The stated reason was the formation of the new Crypto Task Force, which could help resolve the case.
The lawsuit began in June 2023, when the SEC charged Binance and its founder, Changpeng Zhao.
The agency accused the parties of violating US securities laws by offering services to US customers without adhering to proper regulations. Now, regulatory winds in the US are changing, and the SEC is taking a different approach.
Why the SEC and Binance Made a Deal
The deal between the SEC and Binance comes as the regulatory environment in the US is shifting. With Donald Trump’s election to the presidency, the new administration is much more favorable to crypto companies.
This was confirmed when the former SEC Chair Gary Gensler left office. Gensler took a tough stance on crypto assets, which brought him criticism from many industry insiders.
Under new leadership, the SEC is taking a much more conciliatory stance in the crypto industry.
In the case against Binance, the SEC alleged that Binance operated an unregistered securities exchange. In particular, the agency alleged that Binance deliberately evaded securities laws.
SEC also accused the exchange of misusing consumer funds, commingling them with their assets.
Binance was not in trouble just with the SEC. In a prior settlement with the US Commodity Futures Trading Commission, it was forced to pay $2.7 billion in fines. This is why the CEO, Changpeng Zhao, had to agree to step down.
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