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- Binance wins as SEC dismisses lawsuit, signaling a major shift in how crypto regulation will unfold.
- SEC’s decision to drop the case marks a new direction, focusing on policy rather than enforcement.
- Growing trend of reduced enforcement actions reflects rising support for clearer crypto regulations.
Binance and its co-founder, Changpeng Zhao, have been cleared by the SEC which has ended its legal battle. The case was dismissed after a joint request to the court in Washington, D.C. was made on May 29, 2025. It represents a key milestone in how the SEC intends to manage the cryptocurrency industry.
The SEC started the process by filing the lawsuit in June 2023 because it alleges Binance committed several violations. They alleged that it took customers’ deposits, exaggerated trade levels and gave access to its non-registered platform to U.S. investors. Binance allegedly listed Solana and Cardano which the agency categorized as securities and declared as unlawful. In October 2024, the SEC updated its complaint by adding extra accusations.
Shift in Crypto Regulation
After the SEC decided to drop the case, they filed to confirm the dismissal was with prejudice. So, the SEC is not allowed to bring the same complaints again in the future. The SEC pointed out that dismissing these charges was up to them and their policies and it should not serve as a rule for upcoming cases in cryptocurrencies. This demonstrates how the agency has taken a clear new position regarding enforcement.
The case was put on hold twice in 2025, first in February and then in April. The break was connected to the launch of a new crypto task force, with acting SEC Chairman Mark T. Uyeda in charge. While, the task force was asked to examine different methods for regulating cryptocurrencies. By doing so, the SEC is changing its approach from enforcing laws to forming precise and effective rules for the cryptocurrency industry.
Binance’s Legal Resolution
Binance was delighted by the SEC’s ruling, believing it brings positive progress to the crypto industry. The company recognized both President Trump and SEC Chair Paul Atkins for playing a major role in the agency’s decision to stop relying on enforcement alone for regulation. Binance believes that this move will help achieve more clarity for crypto regulation.
However, it comes after Binance’s settlement with the U.S. Department of Justice (DOJ) last month in November 2023. Binance was required to pay $4.3 billion as part of the settlement to resolve accusations of money laundering and breaking U.S. sanctions. After being sentenced to prison for four months, Zhao resigned as the head of the company.
The action taken by the SEC is part of a trend seen in recent months. The agency is enforcing its rules less frequently on big cryptocurrency companies like Coinbase, Consensys and Kraken. The change demonstrates that more pro-crypto figures are being put in top positions under the Trump administration.
