A federal judge in Washington, DC has temporarily halted the US Securities and Exchange Commission's lawsuit against Binance. The 60-day pause comes after both the SEC and the cryptocurrency exchange requested time to explore a resolution, citing the potential impact of a newly created SEC task force.

The task force, launched last month, focuses on reviewing cryptocurrency regulations and is led by Commissioner Hester Peirce, known for her pro-crypto stance.

The initiative may pave the way for progress in resolving the case, which accused Binance of inflating trading volumes, misusing customer funds, and misleading investors.

The lawsuit, filed in June 2023, targeted Binance and its founder Changpeng Zhao for alleged regulatory violations. The exchange has denied wrongdoing but continues to face scrutiny from US regulators.

A potential leadership change at the SEC could also influence the case. Paul Atkins, nominated by Donald Trump to lead the agency, is seen as supportive of the cryptocurrency industry. He would replace Gary Gensler, who has taken a stricter approach to crypto regulation.