BNB Defies Crypto Market Decline Amid Binance-SEC Legal Time-Out But Retail Still Turns Bearish

BNB (BNB), formerly known as Binance Coin, gained 2.7% over the past 24 hours, bucking the broader crypto market downturn triggered by Federal Reserve Chair Jerome Powell’s comments. 

The token’s strength followed news that Binance and the U.S. Securities and Exchange Commission (SEC) have jointly requested a 60-day pause in their ongoing legal battle.

The joint motion, filed on Feb. 10, seeks a temporary halt to litigation that includes serious allegations of securities violations. 

The filing states that the creation of a new crypto task force under SEC Commissioner Hester Peirce could "impact and facilitate the potential resolution of this case."

If the court grants the request, the pause could delay key proceedings, including Binance’s motion to dismiss the SEC’s amended complaint. 

It may also set a precedent for other crypto exchanges facing SEC scrutiny, such as Ripple (XRP) and Coinbase (COIN), to consider similar legal strategies.

The motion argues that a brief stay would “promote the efficient use of the court’s resources.” 

After 60 days, both parties plan to submit a joint status report assessing whether additional delays are necessary.

On Stocktwits, retail sentiment around BNB dipped to ‘bearish’ from ‘neutral’ a day ago as chatter remained at ‘normal’ levels.

The SEC first sued Binance and its co-founder, Changpeng Zhao (CZ), in June 2023, alleging 13 violations of U.S. securities laws. 

The regulator accused Binance of deliberately evading U.S. regulations, enriching itself while putting investor funds at risk.

The legal pause comes amid shifting regulatory dynamics. 

On Feb. 4, the SEC launched a new crypto task force focused on clarifying digital asset regulations, a key area of scrutiny under the Biden administration.

While BNB’s price is down over 9% over the past month, it has gained more than 95% over the last year. 

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Read also: Bitcoin, Ethereum Slip As Powell’s Testimony Offers Little Relief For Crypto Market: Retail Turns Pessimistic