SEC Ends Long-Running Binance Case
U.S. Judge Orders SEC to Return Cryptocurrency Assets to Ripple
The Securities and Exchange Commission (SEC) has officially taken back its lawsuit against Binance and its CEO, Changpeng “CZ” Zhao. This action concludes an almost two-year legal dispute that has heavily scrutinized the global crypto exchange.
On May 29, the two sides filed a joint filing in Washington, DC federal court in which both the SEC and Binance proposed the case be dismissed “with prejudice,” meaning the agency can’t seek to reopen the same case again in the future. The filing revealed that the SEC believed that the dismissal was appropriate based on policy and discretion, suggesting a change in its approach to crypto regulation.
SEC Lawsuit Was Part of Broader Crackdown
The lawsuit was originally filed in June 2023. It accused Binance, its U.S. affiliate BAM Trading, and Zhao of violating securities laws, misappropriation of funds, and deceiving investors. The case symbolized a wider crackdown on crypto under the previous administration, which had taken a hard stance against the industry’s rapid growth.
Since the appointment of President Donald Trump, the regulatory architecture has altered considerably under SEC Chairman Paul Atkins. Since taking over, Atkins has shifted the agency’s approach away from enforcement, dropping or settling several high-profile cases involving major crypto firms like Coinbase, Kraken, and Circle.
Binance and Industry React to Dismissal
Binance rejoiced in the dismissal on social media, dubbing the ruling a “huge win for crypto” and thanking Chairman Atkins and the Trump administration for opposing what they called “regulation by enforcement.” The exchange said it would “continue to build in the U.S. with more clarity and a more constructive regulatory framework.”
This dismissal follows separate charges settled by Binance with the U.S. government. In November 2023, the Department of Justice filed a lawsuit against the exchange. Binance paid a $4.3 billion fine and admitted to compliance failures, while Zhao stepped down as CEO as part of a guilty plea related to anti-money laundering (AML) violations. He received a sentence of four months in prison in April 2024.
A Turning Point for U.S. Crypto Regulation
With the conclusion of the SEC lawsuit, Binance and other prominent crypto platforms now have more space for innovation and growth in the U.S. market. This case signals a shift in regulatory stance—from adversarial to more collaborative and transparent.
The sector is maturing, and this is a turning point that may lead to better and more constructive crypto regulation in the future.
