- SEC ends lawsuit against Binance with no option to refile.
- Crypto regulation now favors clear rules over enforcement.
- The Trump administration is reshaping the SEC’s crypto strategy.
In a major win for the crypto industry, the U.S. Securities and Exchange Commission (SEC) has voluntarily dismissed its civil lawsuit against Binance, the world’s largest cryptocurrency exchange. The dismissal, filed in a Washington, D.C. federal court on May 29, 2025, marks a turning point in regulatory enforcement, as the SEC continues to shift strategy under President Donald Trump’s administration.
The dismissal was filed “with prejudice,” meaning the SEC cannot refile the case. According to a joint stipulation signed by attorneys for the SEC, Binance, and Binance founder Changpeng Zhao, the move is based on policy discretion rather than a legal determination of the facts.
Binance Calls It a Landmark Legal Victory
Binance hailed the dismissal as a “landmark moment” for the industry. A spokesperson for the exchange credited SEC Chairman Paul Atkins and the Trump administration, saying, “Innovation can’t thrive under regulation by enforcement.”
This echoes a long-standing complaint within the crypto community that regulatory agencies have often pursued legal action without first establishing clear rules. Binance and other major players argue this stifles growth and innovation in the sector.
The decision reflects broader policy changes under President Trump, who has vowed to be a “crypto president.” Since his return to the White House, multiple enforcement actions initiated under the Biden administration have been withdrawn or paused.
Trump’s new SEC leadership, under Chairman Atkins, has emphasized building a clearer regulatory framework for digital assets rather than relying heavily on legal crackdowns. Atkins stated earlier in May that his focus would be to “establish clear rules of the road for crypto while discouraging lawbreakers.”
SEC Also Dropped Case Against Coinbase
This isn’t the first reversal in crypto litigation this year. In February, the SEC dropped a similar case against Coinbase, the largest U.S.-based cryptocurrency exchange. That suit had accused Coinbase of offering at least 13 unregistered securities.
The trend suggests a growing reluctance within the SEC to continue cases that many in the industry have long argued were based on uncertain or outdated interpretations of securities law.
Despite the civil case dismissal, Binance still faces legal repercussions from previous charges. In November 2023, the exchange agreed to a $4.32 billion criminal penalty for violating anti-money laundering and sanctions laws. Zhao himself served a four-month prison term for related violations and was released in September 2024.
The dismissal of the SEC civil case does not affect these earlier outcomes but significantly eases regulatory pressure on the company moving forward.
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