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SEC Ends Binance Lawsuit Amid Shift in Crypto Policy

By  |  June 1, 2025

The U.S. Securities and Exchange Commission (SEC) has officially ended its civil case against Binance, the world’s largest crypto exchange, in a move reflecting a broader shift in regulatory posture under President Donald Trump’s second term.

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    According to Reuters, the SEC on Thursday filed a joint stipulation in federal court alongside Binance and its founder, Changpeng Zhao, agreeing to dismiss the case. The regulator described the decision as appropriate “in the exercise of its discretion and as a policy matter,” and emphasized that it did not signal a broader stance on ongoing or future cryptocurrency litigation. The dismissal, filed in Washington, D.C., was made “with prejudice,” barring the SEC from reopening the case.

    Per Reuters, Binance hailed the dismissal as a milestone victory. In a statement, a company spokesperson called it “a landmark moment,” expressing gratitude to SEC Chairman Paul Atkins and the Trump administration “for recognizing that innovation can’t thrive under regulation by enforcement.” The SEC did not provide further comment.

    The lawsuit, filed in June 2023 during the Biden administration, had accused Binance and Zhao of serious misconduct, including inflating trading volumes, diverting customer assets, and misleading investors regarding the platform’s security practices. At the time, the SEC also alleged that Binance facilitated the trading of cryptocurrency tokens that it classified as unregistered securities.

    Read more: Binance Advises Governments on Crypto Rules and Digital Asset Reserves

    The civil case was separate from a high-profile criminal investigation that concluded in November 2023, when Binance admitted to violating federal anti-money laundering and sanctions laws. That resolution saw the company pay $4.32 billion in penalties. Zhao, who also pleaded guilty in that case, served a four-month prison sentence and was released in September 2024.

    The dismissal comes amid broader regulatory recalibrations. In February, the SEC also dropped a separate case against Coinbase, the largest U.S.-based crypto exchange, which had been accused of allowing trading in a dozen or more unregistered tokens. According to Reuters, these moves may signal a more lenient approach to crypto regulation under the Trump administration compared to the Biden-era SEC, which had adopted a more aggressive stance.

    The crypto sector has long resisted efforts to regulate digital tokens under traditional securities laws, arguing instead that many tokens should be treated as commodities. With this latest dismissal, the industry may feel bolstered in its push for a lighter regulatory touch.

    Source: Reuters