SEC Dismisses Lawsuit Filed Against Binance in Historic Ruling

The U.S. Securities and Exchange Commission (SEC) has officially dropped its lawsuit against the cryptocurrency exchange Binance.

This development concludes one of the most prominent enforcement actions in the cryptocurrency sector.

Coordinate Dismissal Request

“Today marks a significant victory for the cryptocurrency sector. The SEC has dismissed its case against us,” Binance announced in a post on May 30. The exchange also expressed appreciation to SEC Chairman Paul Atkins and the team from President Trump for opposing regulation through enforcement, stating, “Innovation in the U.S. is back on course – and this is only the start.”

The dismissal was the result of a joint request made on May 29 by the SEC, Binance, and former CEO Changpeng Zhao. This motion, submitted to a federal court located in Washington, D.C., sought to have the original complaint from the SEC withdrawn.

The regulatory body stated that ending the case was suitable “in the exercise of its discretion and as a policy matter,” and made it clear that this decision does not imply any stance on other legal actions involving cryptocurrency. The dismissal was executed with prejudice, meaning the case cannot be reopened.

This ruling follows instances of the lawsuit being halted on two occasions earlier this year, in February and April. The SEC’s Crypto Task Force, established under Acting Chair Mark T. Uyeda, was instrumental in the decision to proceed with this action.

The agency initially filed suit against Binance, Zhao, and its U.S. subsidiary in June 2023, accusing them of violating securities laws by offering unregistered securities to U.S. investors, mismanaging customer funds, and deceiving investors. The agency also stated that the exchange lacked adequate financial oversight.

It was the last major regulatory body pursuing Binance after Zhao’s $4.3 billion settlement with the U.S. government the previous year, during which Zhao admitted guilt and resigned as CEO.

Shift in Strategy

The SEC has begun to alter its approach to cryptocurrency regulation under the second term of President Donald Trump. This recent event is part of a pattern in which the agency has rolled back multiple enforcement actions.

Earlier this year, it either abandoned or settled complaints involving Coinbase, Ripple, and Kraken. Furthermore, the agency concluded its investigations into Robinhood Crypto, Uniswap Labs, and OpenSea.

Since then, Paul Atkins has taken over the role of SEC Chairman, adopting a pro-cryptocurrency position and committing to establishing a regulatory framework for digital assets. Under his and Uyeda’s guidance, the agency has organized several roundtables focused on cryptocurrency regulation and financial innovation, with Commissioner Hester Peirce significantly contributing to these dialogues.