The US Securities and Exchange Commission (SEC) has formally dismissed its lawsuit against Binance, marking a significant shift in the federal government’s approach to cryptocurrency regulation, the Hill reports.
The case, which began under the Biden administration, had accused the crypto exchange and its founder, Changpeng Zhao, of operating without proper registration, misleading investors, and inflating trading volumes.
In a filing submitted Thursday, the SEC said that “in the exercise of its discretion and as a policy matter,” it considered dismissal of the litigation appropriate. The move is part of a broader reorientation of the agency’s crypto enforcement strategy under President Trump’s administration.
Binance has faced a turbulent relationship with US authorities. In 2023, it agreed to pay $4 billion in a settlement with the Department of Justice over violations of anti-money laundering laws. Zhao, who stepped down as CEO amid the probe, served four months in prison related to those violations.
The SEC’s lawsuit was one of the most high-profile crypto enforcement actions initiated during the Biden era. But after President Trump took office earlier this year and appointed Republican commissioner Mark Uyeda as acting chair of the SEC, the agency began reassessing its regulatory posture toward digital assets. One of the first actions was a joint request with Binance in February to pause the case, signaling a potential shift in direction.
That shift accelerated with the confirmation of Paul Atkins as the new SEC chair in April. Since then, the agency has rolled back several enforcement actions and announced the creation of a new crypto-focused task force aimed at studying digital asset markets rather than litigating them. Lawsuits against several major firms, including Coinbase, Kraken, Consensys, and Ripple, have also been dismissed or reassessed.
The Binance case had been one of the last remaining active cases from the previous administration’s regulatory framework.
In a statement, Binance welcomed the SEC’s decision, calling it a “landmark moment” for the company and the broader crypto industry.
“We’re deeply grateful to Chairman Paul Atkins and the Trump administration for recognizing that innovation can’t thrive under regulation by enforcement,” a spokesperson said. “The US is back – leading from the front in the future of blockchain.”
The announcement follows increased attention on Binance after its involvement in a $2 billion transaction between an Emirati firm and a new stablecoin associated with a Trump family crypto initiative. The deal has drawn both media scrutiny and industry interest, further highlighting the company’s prominent role in the evolving digital finance landscape.
