In a major development 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, marking a clear shift in regulatory tone under the Trump administration.
The dismissal, filed in federal court in Washington, D.C., was made ‘with prejudice,’ meaning the case cannot be refiled. A joint stipulation was signed by attorneys for the SEC, Binance, and the exchange’s Founder and former CEO, Changpeng Zhao (CZ).
The SEC said it made the decision “in the exercise of its discretion and as a policy matter,” clarifying that the move should not be interpreted as a broader signal on other pending crypto-related cases.
A Binance spokesperson hailed the dismissal as a “landmark moment” and credited SEC Chairman, Paul Atkins, and President Trump for changing course on crypto oversight.
“Innovation can’t thrive under regulation by enforcement,” the company said in a statement.
The lawsuit, originally filed in June 2023, had accused Binance and Zhao of:
Inflating trading volumes
Misusing customer funds, and
Offering unregistered securities.
The civil case was separate from Binance’s criminal settlement in November 2023, when the company pleaded guilty to violating anti-money laundering and sanctions laws and agreed to pay $4.32 billion in penalties. Zhao also pleaded guilty and served a four-month prison sentence, completing his term in September 2024.
The SEC’s retreat from the Binance case follows its earlier February 2025 decision to drop a similar lawsuit against Coinbase, the largest U.S.-based crypto exchange. That case had alleged the trading of at least 13 unregistered tokens.
This recent wave of dismissals signals a broader policy shift. SEC Chair, Paul Atkins, appointed under Trump’s second term, has emphasized the need for a clear and tailored regulatory framework for digital assets – one that promotes compliance without stifling growth.
REGULATION | #Binance Founder, CZ, Sentenced to Four Months in Jail For Enabling Money Laundering
“I will do my time, conclude this phase and focus on the next chapter of my life (education).” – @cz_binance, Founder, Binancehttps://t.co/g64maGKQVA @binance pic.twitter.com/4Dm4fbHQ1d
— BitKE (@BitcoinKE) May 1, 2024
Meanwhile, the SEC is still pursuing enforcement in certain areas. On May 20 2025, the agency sued UniCoin, alleging the company fraudulently raised over $100 million for tokens it claimed were backed by real estate and pre-IPO company shares.
President Trump, who campaigned as a “crypto president” in 2024, has vowed to roll back aggressive enforcement actions carried out under his predecessor, Gary Gensler. Under the new administration, many of those actions have been paused or withdrawn.
POLITICS | Trump to Unveil Plan to Make U.S. Crypto Capital of the Planet
_”I’m laying out my plan to ensure that the United States will be the crypto capital of the planet. Donald Trump#Crypto #IndependenceDay2024 #BTChttps://t.co/5kJdwHaRI5
— Salaxzy (@Salaxzy) August 31, 2024
As the regulatory landscape continues to evolve, the crypto industry is watching closely to see how far the SEC’s new direction will go – and whether it brings the clarity the sector has long demanded.
REGULATION | #Nigeria Court Begins Hearing Tax Evasion Case Against @binance
Binance is accused of providing services – including crypto trading, remittance, and asset transfers – to Nigerians without deducting the required VAThttps://t.co/CcqN9558U7 @FIRSNigeria pic.twitter.com/CUuBuZtE9x
— BitKE (@BitcoinKE) February 21, 2025
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