US SEC Archives | MarketsXplora

Key Insights The U.S. SEC voluntarily dismissed its 2023 lawsuit against Binance and former CEO Changpeng Zhao, citing policy discretion under the Trump administration. The lawsuit had accused Binance of inflating trading volumes, misusing customer funds, and facilitating unregistered securities trading. WASHINGTON (MarketsXplora) – The U.S. Securities and Exchange Commission (SEC) has voluntarily dismissed its lawsuit against cryptocurrency giant Binance and its former CEO Changpeng Zhao, marking a significant shift in the regulator’s approach to the digital asset industry. The dismissal was formalized on Thursday through a joint stipulation filed in the U.S. District Court for the District of Columbia by lawyers representing the SEC, Binance, and Zhao. The SEC stated that the decision to drop the case was made “in the exercise of its discretion and as a policy matter,” signaling a new regulatory stance under the current Trump administration. Why Did the SEC Choose to Drop Such a High-Profile Case Against Binance? The lawsuit, initially filed in June 2023, had accused Binance and Zhao of artificially inflating the exchange’s trading volumes, diverting customer funds, misleading investors about surveillance controls, and facilitating the trading of cryptocurrencies potentially classified as unregistered securities. Despite the serious allegations, the SEC chose to dismiss the case with prejudice, preventing the agency from pursuing it again. This move comes months after the SEC and Binance requested multiple pauses and extensions, reflecting a period of reassessment as the SEC’s newly established crypto task force engaged with various industry stakeholders. The task force’s efforts suggest a strategic pivot from the more aggressive enforcement actions characteristic of the agency’s previous leadership under former Chair Gary Gensler and the Biden administration. During that earlier period, the SEC brought several high-profile lawsuits against major crypto players, including Coinbase, Uniswap, and OpenSea. However, many of these cases were dropped or stayed recently under the Trump administration, which has emphasized a more measured regulatory approach. “The dismissal of the SEC’s case against Binance is a landmark moment,” a Binance spokesperson said in an emailed statement. “We’re deeply grateful to Chairman Paul Atkins and the Trump administration for recognizing that innovation can’t thrive under regulation by enforcement.” Despite the SEC’s withdrawal, Binance and Zhao have faced significant legal consequences over the past two years. The exchange and its founder pleaded guilty to Bank Secrecy Act violations, paying over $4 billion to resolve a U.S. Department of Justice investigation. Zhao served a four-month prison term for money laundering charges and stepped down as Binance CEO, though he remains the exchange’s majority shareholder. Additionally, Binance settled with the Commodity Futures Trading Commission (CFTC) for $2.85 billion. Republican SEC Commissioner Hester Peirce, who has criticized the agency’s prior heavy-handed approach to crypto regulation, emphasized at the Bitcoin 2025 conference in Las Vegas that enforcement tools remain crucial but should be reserved for clear violations of well-established rules. “The goal is to use our enforcement tool for what it was intended to be used for, which is when there are clear rules and people violate them,” Peirce said. “It’s certainly not to say that there will not be enforcement. There’s a lot of bad activity, as we all know, that’s perpetrated in the name of crypto.” The SEC clarified that its dismissal of the Binance case does not signal a change in its broader stance toward cryptocurrency-related litigation. The agency has simultaneously dropped several other high-profile lawsuits and ongoing investigations in the crypto sector, reflecting a more nuanced and collaborative regulatory posture.

U.S. SEC Voluntarily Dismisses Lawsuit Against Binance in Landmark Move

You missed

Robinhood Pushes Into Indonesia With Dual Fintech Acquisitions

Coinbase Returns to India After Two-Year Exit, Plans Local Fiat On-Ramps for 2026

ASIC Blocks FXCM From Offering CFDs to Retail Traders

Ledger Researchers Expose Chip Vulnerability That Could Leave Smartphone Crypto Wallets at Risk