The crypto world breathed a collective sigh of relief as the U.S. Securities and Exchange Commission (SEC) voluntarily dismissed its civil lawsuit against Binance, the world’s largest cryptocurrency exchange. The pivotal decision—finalized yesterday (Thursday) with prejudice, meaning the SEC cannot refile the case—signals a major shift in the regulator’s approach to digital assets, particularly following U.S. President Donald Trump’s return to the White House.
The joint stipulation of dismissal, signed by legal representatives for the SEC, Binance, and its founder Changpeng Zhao, was officially filed in a Washington, D.C. federal court. The SEC clarified that the dismissal was a discretionary policy decision and should not be interpreted as a judgment on other ongoing crypto-related cases.
Described as a “landmark moment” by a Binance spokesperson, the dismissal follows the SEC’s pause in proceedings to evaluate the impact of its newly formed crypto task force. The original lawsuit, filed in June 2023, accused Binance and Zhao of inflating trading volumes, misusing customer funds, and misleading investors about internal compliance measures. The exchange was also alleged to have facilitated transactions involving unregistered securities.
It’s important to note that this civil case was separate from Binance’s November 2023 guilty plea and the resulting $4.32 billion criminal penalty for anti-money laundering and sanctions violations. Zhao served a four-month sentence as part of that resolution.
The SEC’s dismissal appears aligned with President Trump’s campaign promise to be a “crypto president” and to roll back the aggressive enforcement actions initiated under former SEC Chairman Gary Gensler. In line with this shift, the SEC has withdrawn or paused several other cryptocurrency enforcement actions, including a similar case against Coinbase dismissed in February.
This evolving regulatory environment offers a glimmer of hope for a crypto industry that has long called for clear and consistent guidelines governing digital assets.
