TLDR
- The SEC filed to dismiss its long-running lawsuit against Binance on Thursday after nearly three years of legal proceedings
- The dismissal is with prejudice, meaning the SEC cannot bring this lawsuit against Binance again in the future
- This marks the latest in a series of crypto lawsuit withdrawals by the SEC under new leadership following Trump’s return to office
- Paul Atkins replaced Gary Gensler as SEC Chair and has signaled a less aggressive approach toward crypto regulation
- Binance thanked the new SEC leadership and Trump administration for moving away from “regulation by enforcement”
The Securities and Exchange Commission moved to dismiss its lawsuit against crypto exchange Binance on Thursday, ending a legal battle that began in June 2023. The SEC and Binance filed a joint motion to drop the case without providing a detailed explanation for the decision.
Huge win for crypto today. The SEC’s case against us is dismissed.
Thank you to Chairman Atkins & the Trump team for pushing back against regulation by enforcement. U.S. innovation is back on track – and it’s just the beginning.— Binance (@binance) May 29, 2025
The lawsuit was one of several high-profile enforcement actions taken by the SEC under former Chairman Gary Gensler. The agency had accused Binance of operating as an unregistered broker, clearinghouse and exchange while allegedly mishandling customer funds and inflating trading volumes.
Judge Amy Berman Jackson had previously ruled that the SEC brought plausible charges against the exchange. She allowed most of the lawsuit to proceed last year before the case was paused earlier in 2025.
The dismissal comes with prejudice, meaning the SEC cannot bring this specific lawsuit against Binance again. The filing also blocks Binance and its affiliated entities from filing complaints against the SEC related to this case.
New Leadership Brings Policy Changes
The case dismissal follows Donald Trump’s return to the presidency and his appointment of new SEC leadership. Trump nominated Paul Atkins as the agency’s new chairman, replacing Gary Gensler who had taken an aggressive stance toward crypto regulation.
Atkins was confirmed and sworn into office last month. The new leadership has signaled a departure from what critics called “regulation by enforcement” under the previous administration.
In a joint filing, the parties noted the case had been paused while the SEC’s new crypto task force worked to develop a regulatory framework for digital assets. The Commission stated the dismissal was appropriate as “a policy matter” and an exercise of its discretion.
Binance expressed satisfaction with the outcome in public statements. A spokesperson for Binance.US said they were pleased the SEC fully dismissed its charges, confirming the company did not violate U.S. securities laws.
The exchange called the news a major milestone that allows them to focus on growing their business. They plan to work on restoring relationships that were impacted by the regulatory uncertainty.
Broader Regulatory Shift
The Binance case represents just one of many enforcement actions the SEC has withdrawn since the start of 2025. The agency has dropped over a dozen investigations and lawsuits against crypto companies.
Other major exchanges including Coinbase and Kraken have seen their cases dismissed. The SEC had previously sued these platforms on similar grounds as the Binance case.
U.S. House lawmakers introduced legislation on Thursday to define how the SEC and Commodity Futures Trading Commission would oversee digital assets. The bill aims to provide clearer regulatory guidelines for the crypto industry.
Recent Developments
Binance founder Changpeng Zhao, known as CZ, previously pleaded guilty to charges and served time in prison. Reports suggest he has requested a presidential pardon from Trump, though this has not been confirmed by official sources.
Last week, Binance announced it would list USD1, a stablecoin issued by World Liberty Financial. The crypto company has ties to Trump and members of his family.
SEC Commissioner Hester Peirce spoke at Bitcoin 2025 in Las Vegas earlier Thursday. She warned crypto investors not to expect government bailouts if they invest in speculative digital assets.
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