In a major turn of events, the U.S. Securities and Exchange Commission (SEC) has officially ended its lawsuit against Binance. This legal battle, which began nearly three years ago, has now concluded with a joint filing by both parties to dismiss the case.
SEC and Binance Agree to Dismiss Case
According to Reuters, the SEC has voluntarily dropped the lawsuit against Binance and its founder, Changpeng Zhao (CZ). A joint stipulation of dismissal was submitted in federal court, signaling a mutual decision to end the prolonged legal standoff.
The court documents confirm that the dismissal is “with prejudice,” meaning the SEC cannot reopen the case later. Binance celebrated the decision, calling it a “huge win for crypto” on X (formerly Twitter).
In its official response, the SEC referred to the move as an exercise of discretion, indicating a change in enforcement tone.
Thanks to Trump and New SEC Leadership
Binance issued public thanks to SEC Chairman Paul Atkins and U.S. President Donald Trump for challenging regulation by enforcement. The company also took a veiled jab at former SEC Chairman Gary Gensler, saying, “We are still here.”
Since taking over, Paul Atkins has aimed to make the U.S. a global crypto hub, promising to shift toward clearer and less aggressive regulation.
Regulatory History and Legal Background
The SEC originally filed its case in 2023, accusing Binance of:
- Listing unregistered securities.
- Mishandling user funds.
- Artificially inflating trading volumes.
Earlier this year, both sides agreed to a 60-day pause in the proceedings, foreshadowing a potential resolution. The dismissal now follows several other crypto legal victories, including Binance’s win in a $1.76 billion FTX lawsuit.
Changing Landscape for U.S. Crypto Regulation
Under Atkins’ leadership, the SEC has dropped multiple cases:
- Coinbase
- Kraken
- Gemini
- Robinhood
Only the Ripple case remains active, though it faces legal challenges from the courts.
This wave of dismissals marks a clear departure from the Gensler era, which was known for aggressive enforcement against the crypto industry.
Is a CZ Pardon Request Next?
With the Binance lawsuit dropped, attention now turns to Changpeng Zhao’s pardon request. CZ pleaded guilty in 2023, and reports suggest he has already submitted a formal request to President Trump.
Interestingly, there are rumors of Trump family members showing interest in acquiring a stake in Binance. While unconfirmed, this adds a layer of intrigue to the already dramatic developments.
