After nearly three years of legal sparring, the US Securities and Exchange Commission (SEC) has unexpectedly withdrawn its high-profile lawsuit against Binance, the world’s largest cryptocurrency exchange.
The decision to end the case—officially filed with a Washington, D.C. federal court on 29 May—raises fresh questions about the direction of crypto regulation in the United States.
The case, originally launched in 2023, had accused Binance and its founder, Changpeng Zhao, of a host of violations ranging from selling unregistered securities to misleading investors and mishandling customer funds.
But now, both sides have agreed to walk away.
With a court filing signed by representatives of the SEC, Binance, and Zhao, the lawsuit is "dismissed with prejudice,” meaning it cannot be reopened.
The sudden change comes amid a shift in political and regulatory leadership.
Under the Biden administration and SEC Chair Gary Gensler, the agency took an aggressive stance against the crypto industry between 2021 and 2024.
Binance, along with several other major platforms such as Coinbase, Kraken, and Gemini, found itself facing lawsuits for allegedly offering unregistered securities and failing to follow market rules.
One of the most striking details from the SEC’s original complaint was an internal message cited from December 2018, in which a compliance officer at Binance reportedly told a colleague:
“We are operating as a fking [sic] unlicensed securities exchange in the USA bro.”
Gensler accused Binance of constructing a “web of deceit,” claiming the exchange pretended to enforce compliance controls while actively flouting US laws behind the scenes.
According to the SEC at the time, Binance had allowed American users to continue trading on its main platform, inflated its trading volumes, and diverted customer funds.
But following Donald Trump’s return to office and the appointment of Paul Atkins as the new SEC Chair, the Commission has pivoted.
The Binance case is just one of several crypto-related lawsuits dropped in recent months.
A growing number of voices within the industry now view the regulator’s previous approach as excessive.
In response to the dismissal, Binance posted on X to celebrate the outcome, describing it as a “huge win”.
The exchange wrote:
“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.”
A spokesperson further praised the regulatory shift, stating,
“We’re deeply grateful to Chairman Paul Atkins and the Trump administration for recognizing that innovation can’t thrive under regulation by enforcement. The U.S. is back—leading from the front in the future of blockchain.”
Binance.US, the exchange’s US affiliate which was also named in the lawsuit, echoed a similar sentiment.
“This outcome confirms what we have always known: that we did not violate U.S. securities laws. [..] With this case behind us, we’re turning our full attention to growth—expanding crypto access, winning back trust, and restoring relationships that were impacted by the SEC.
We’re more optimistic than ever about the future of http://Binance.US and crypto in the U.S.”
Source: X
Back in 2023, the SEC accused Binance of illegally listing tokens the agency considered securities, including several popular cryptocurrencies.
It also alleged that Binance used complex arrangements to disguise ownership structures and mislead regulators and investors about its operations.
The complaint highlighted how Binance’s US-facing business had failed to properly prevent American customers from accessing the global platform.
Despite the severity of the charges, Binance never admitted wrongdoing, and the lawsuit did not progress to trial.
It remained locked in procedural motions and negotiations for over two years.
The decision to shut down the Binance case reflects a broader retreat from the aggressive enforcement strategy of the past.
Since Paul Atkins took over the SEC earlier this year, the regulator has moved to clear its backlog of crypto lawsuits.
Alongside Binance, several other exchanges have seen their legal troubles with the SEC come to an end, including Kraken, Gemini, and Robinhood.
Atkins, a long-time advocate of market-friendly regulation, has openly stated his desire to make the US a hub for blockchain innovation.
His appointment, backed by President Trump, has coincided with an easing of hostilities between Washington and the crypto sector.
While the SEC did not comment extensively on its decision, the Commission said the dismissal was an appropriate use of its discretion.
No financial settlement was disclosed, and Binance continues to operate with its native token BNB trading at around $675.95, down 1.66% over the past 24 hours, according to CoinMarketCap.
For now, one of the most high-profile legal challenges in the crypto industry has come to a quiet end—raising eyebrows across both regulatory and financial communities.
Speculation is heating up that Changpeng “CZ” Zhao, the founder of Binance, could be preparing for a dramatic return to the exchange he was forced to leave nearly two years ago.
XingChiWindtree is being delisted from Nasdaq after its share price crashed below the required $1 level. The company’s shift from biotech to holding BNB tokens failed to win investor trust, wiping out nearly all its value.
AnaisBNC, a company listed on Nasdaq, purchased 200,000 Binance Coins for $160 million and aims to raise up to $1.25 billion to increase its BNB holdings. This reflects a rising trend of firms investing in BNB as part of their corporate crypto portfolios.
Weatherly
Jason RiggsChangpeng "CZ" Zhao has broken through into the top echelons of the world’s wealthiest individuals, with his net worth reaching an estimated $75 billion following BNB’s new all-time high of $857.18.
XingChiBinance Changpeng Zhao's family office, YZi Labs, is making a significant move by supporting an investment company to go public in the U.S.
XingChiSilk Road founder Ross Ulbricht has resurfaced as a polarising crypto figure, raising $1.8 million in Bitcoin by auctioning prison memorabilia. Days later, he received a surprise 300 BTC donation worth $31 million—reigniting debate over whether this support reflects alignment with his ideals or raises ethical concerns in today’s crypto culture.
CatherineBhutan has launched the world’s first national crypto tourism payment system, letting visitors pay for everything from flights to local goods using digital currencies like Bitcoin and BNB. The system, built with Binance Pay and DK Bank, helps local businesses—especially in remote areas—accept crypto payments easily.
AnaisUSDC is now the default currency on Binance Pay, making it easier for users to send and receive money instantly with zero gas fees. This update simplifies payments for both individuals and businesses, offering fast, low-cost transactions using a stable digital dollar.delays or extra costs.
AnaisJustin Sun purchased the duct-taped banana artwork for $6.2 million, calling it a symbol of the connection between art, memes, and cryptocurrency. The purchase has sparked debate, with some questioning whether it’s a genuine cultural statement or a calculated move to maintain his public image.
AnaisThe DeepSeek-R1-Lite-Preview is reshaping mathematical reasoning, surpassing competitors with its performance and transparency. It provides real-time insights and plans to release open-source tools, intensifying generative AI competition.
CatherineA Texas court ruled against the SEC’s expanded definition of "dealer," a significant setback for the agency’s efforts to regulate crypto firms. The decision is seen as a win for the crypto industry, which views it as a rejection of the SEC's overreach in controlling digital assets.
WeatherlySam Altman envisions AI that "loves humanity," believing alignment efforts are advancing well. But is this an ambitious aspiration or an unattainable ideal?
KikyoMastercard and JPMorgan have teamed up to simplify and speed up cross-border business payments using blockchain technology. Their systems will connect to offer faster settlements, better transparency, and easier management for international transactions.
WeatherlyUpbit refunded 8.5 billion won to 380 voice phishing victims, reinforcing its commitment to user security. Authorities have also linked North Korea's Lazarus Group to the 2019 Ethereum theft of $1.4 billion. In response to rising crypto crimes, Upbit and law enforcement are ramping up their collaboration to safeguard the digital finance space.
CatherineBitcoin is nearing the $100,000 mark, driven by growing optimism around Trump’s crypto-friendly policies and rising institutional interest. The crypto market is surging, with altcoins also gaining strength, signaling a bullish trend across the sector.
AnaisKorea's first AI-powered drama, "Kiss Lighting – Ghost Cupid," uses AI tools like ChatGPT and Midjourney for scriptwriting and visuals, offering a cost-effective and innovative approach to production. AI is making content creation more accessible, though challenges remain in maintaining audience engagement and addressing legal concerns over ownership and copyright.
WeatherlySouth Korea's financial regulator is urging tighter oversight of the volatile cryptocurrency market, which recently surpassed the stock market in transaction volume. Authorities also confirmed North Korean hackers stole significant cryptocurrency in 2019, intensifying concerns about security and market manipulation.
WeatherlyBritain is ramping up its cyber defences in response to the growing threat of AI-driven attacks from Russia, with a new AI security lab and £8.22 million investment. McFadden emphasised the urgency of protecting digital systems, as Russia’s cyberattacks continue to target Ukraine and its supporters.
Anais