The U.S. Securities and Exchange Commission (SEC) voluntarily withdrew its lawsuit against Binance and its founder Changpeng Zhao. This decision was formalized through a joint agreement submitted to federal court in Washington, D.C., signed by attorneys representing the SEC, Binance, and Zhao.
The original lawsuit, filed in 2023, accused Binance of several violations, including artificially inflating trading volumes, misusing customer funds, allowing U.S. customers to access the platform without proper restrictions, and misleading investors about its market monitoring practices. The SEC also claimed that Binance facilitated the trading of digital tokens that are considered unregistered securities.
The withdrawal of this case corresponds to a larger shift in the SEC's approach to cryptocurrency regulation during the current administration. After President Trump's return to power, the SEC began to move away from aggressive litigation against crypto firms, opting instead for the development of a comprehensive regulatory framework. This political shift has led to the withdrawal of other high-profile cases, including those involving Coinbase and Kraken.
Following the announcement, the cryptocurrency market reacted positively. Binance Coin (BNB) experienced a significant price increase, reaching $681, while the price of Bitcoin rose again to approximately $106,000.$BNB
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