A federal judge has paused a lawsuit involving 18 states against the U.S. Securities and Exchange Commission (SEC), which was initiated by a coalition of state attorneys general. Judge Gregory Van Tatenhove of the Eastern District of Kentucky granted a 60-day stay after the SEC indicated that the case might be resolved, influenced by a transition in its leadership and shifting enforcement priorities. The lawsuit, filed in November, accused the SEC, under then-chair Gary Gensler, of overstepping its authority by regulating crypto firms without proper legislative backing. The move to halt the case reflects a possible change in the SEC's historically aggressive enforcement stance towards the crypto industry, especially following the departure of the Trump administration and the appointment of new SEC leadership, characterized by a more favorable approach towards crypto regulation. The affected parties have agreed to provide a joint status update within 30 days to assess developments in the case.

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