SEC drops lawsuit against crypto giant Binance

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The U.S. Securities and Exchange Commission (SEC) has officially dropped its long-running lawsuit against Binance and its founder and former CEO Changpeng Zhao.

The lawsuit, originally filed in June 2023, accused Binance of securities law violations including illegally serving U.S. customers, misusing customer funds and misleading investors about its surveillance controls, etc.

The dismissal was made through a joint motion filed on May 29, 2025, by the SEC, Binance, and Zhao in the U.S. District Court for the District of Columbia, requesting the case be dismissed with prejudice, meaning it cannot be refiled.

The SEC stated the dismissal was appropriate "in the exercise of its discretion and as a policy matter," reflecting a broader regulatory shift under the Trump administration and new SEC Chair Paul Atkins, who has emphasized creating a clearer regulatory framework rather than enforcement by litigation.

This move is part of a wider trend where the SEC has dropped or settled several cryptocurrency enforcement actions against firms like Coinbase and others, signaling a less aggressive regulatory stance on crypto.

Binance called the dismissal a "huge win for crypto" and thanked Chair Paul Atkins and former President Donald Trump for pushing back against "regulation by enforcement".

The lawsuit's dismissal follows Binance's November 2023 settlement with the Department of Justice, where the company admitted to violations including sanctions breaches and anti-money laundering failures, paying a $4.3 billion fine, and Zhao serving a prison sentence for money laundering charges.

The SEC's dropping of the Binance lawsuit marks a significant regulatory retreat from prior aggressive enforcement actions against major crypto firms, aligning with the Trump administration's approach to fostering innovation with clearer rules rather than litigation.

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Wow, what a major development in the crypto world! The SEC dropping the Binance lawsuit definitely marks a turning point in crypto regulation.

It's interesting to see how regulatory approaches are shifting under new leadership - from aggressive enforcement to focusing on clearer frameworks. While this is being called a "win for crypto," it's worth remembering Binance's past settlements too.

The crypto space continues to evolve rapidly, and this case will likely be studied for years to come as a key moment in digital asset regulation. Exciting times ahead for the industry!

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