SEC Withdraws Lawsuit Against Binance
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The U.S. Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Binance. This legal reversal is a major win for the crypto sector, signaling regulatory relief and increasing investor optimism — although Bitcoin still declined slightly, suggesting the news may have been priced in.
Extended description:
SEC Drops Lawsuit Against Binance, Marking a Regulatory Shift in U.S. Crypto Policy
In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has officially dismissed its civil lawsuit against Binance, the world's largest cryptocurrency exchange, and its founder Changpeng Zhao. The dismissal, filed on May 29, 2025, concludes a legal battle initiated in June 2023, which accused Binance of operating unregistered securities exchanges, misrepresenting trading practices, and commingling investor and company funds.
The SEC's decision to drop the case "with prejudice"—meaning it cannot be refiled—signals a notable shift in the agency's approach to cryptocurrency regulation under the Trump administration. SEC Chairman Paul Atkins, appointed by President Trump, has emphasized the need for a clear and supportive regulatory framework for digital assets, moving away from the aggressive enforcement actions characteristic of the previous administration.
Binance welcomed the dismissal as a "landmark moment," expressing gratitude to Chairman Atkins and the Trump administration for recognizing that "innovation can't thrive under regulation by enforcement." The company had consistently denied the SEC's allegations.
This development follows Binance's separate settlement with the U.S. Department of Justice in November 2023, where the company agreed to pay a $4.3 billion fine for violating anti-money laundering laws, and Zhao served a four-month jail sentence related to the charges.
The SEC's move is part of a broader trend under the current administration to foster a more crypto-friendly environment. Earlier this year, the SEC dismissed similar cases against other major crypto firms, including Coinbase and Kraken, and established a "crypto task force" aimed at developing a comprehensive regulatory framework for digital assets.
Despite the regulatory relief, the cryptocurrency market experienced a slight downturn following the announcement. Bitcoin's price fell by 2.3% to $105,935, while other major cryptocurrencies like Ether and Solana also saw declines. Analysts suggest that the market had already priced in the anticipated regulatory shift.
The dismissal of the Binance lawsuit marks a pivotal moment in the evolving relationship between U.S. regulators and the cryptocurrency industry, indicating a move towards clearer guidelines and cooperation, and away from the previous era of stringent enforcement actions.
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