SEC and Binance Seek Lawsuit Dismissal After Yearlong Battle

• The SEC and Binance jointly move to dismiss the lawsuit, ending a yearlong legal battle.
• The filing cites policy considerations and discretionary authority as reasons for dismissal.
• The SEC’s new Crypto Task Force signals a shift from enforcement to clearer regulation.
• The crypto community sees a potential thaw in relations, though it remains cautiously optimistic.

The U.S. Securities and Exchange Commission (SEC) and Binance have jointly filed a stipulation seeking the dismissal of the agency’s ongoing lawsuit against the global cryptocurrency exchange.

The news broke on May 29 through financial journalist Eleanor Terrett, who shared a snapshot of the legal document on X (formerly Twitter). The filing, submitted in the U.S. The District Court for the District of Columbia identified the SEC as the plaintiff. It listed Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings Inc., and Binance founder Changpeng Zhao as defendants.

The lawsuit has been a focal point of regulatory debate since it was filed in June 2023 and amended in October 2024. It is now on the verge of dismissal. The filing cited the commission’s discretionary authority and policy considerations as the basis for this decision:

“Whereas, in light of the foregoing, and the exercise of its discretion and as a policy matter, the Commission believes the dismissal of this litigation is appropriate,” the court document reads.

This marks a significant shift in tone from earlier stages of the case. Both parties had already signaled a potential off-ramp in February 2025, when they requested the court to temporarily stay the proceedings. A similar request followed in April.

SEC Shifts Stance with New Crypto Task Force

At the heart of this change appears to be the formation of the SEC’s Crypto Task Force, announced by Acting SEC Chairman Mark T. Uyeda on January 21, 2025. Tasked with crafting a clearer regulatory framework for digital assets, the task force is a key step. It aims for more structured and collaborative policymaking. This moves away from the aggressive enforcement approach of previous leadership.

Legal experts interpret the move as a strategic retreat by the SEC. This mirrors its recent pattern of quietly winding down legal actions against several major players in the crypto sector. In recent months, the agency has also ended cases or investigations involving Coinbase, ConsenSys, Kraken, Circle, and Immutable.

Despite the positive momentum, the crypto community on X remains cautiously optimistic. While many celebrated the development as a potential thaw in regulator-crypto relations, others were quick to point out the long-drawn nature of the SEC’s battle with Ripple Labs. That lawsuit, which began in December 2020, only concluded with a final judgment in August 2024 and a $125 million civil penalty.

Still, analysts argue that the joint stipulation in the Binance case could mark a turning point. “This move represents not just a tactical legal decision but a broader shift in how the SEC is approaching digital assets,” said a Washington-based regulatory consultant. “The focus is now pivoting from punishment to policy.”

With the SEC stepping back from high-profile litigation, the tides may be turning for the crypto industry. The SEC is also showing openness to regulatory reform. Whether this will usher in a new era of cooperation or remain a temporary truce remains to be seen. For now, Binance and the broader crypto market appear to be breathing a collective sigh of relief.

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