The U.S. Securities and Exchange Commission (SEC) has officially dismissed its high-profile lawsuit against Binance, BAM entities, and former CEO Changpeng Zhao, signaling a potential end to the enforcement-first approach that has dominated U.S. crypto policy in recent years.Filed on May 29, 2025, the joint dismissal with prejudice—meaning the case cannot be refiled—marks a dramatic end to a nearly two-year legal saga that once threatened the future of the world’s largest crypto exchange. The lawsuit, originally filed in June 2023, accused Binance of manipulating trading volumes, misusing customer funds, and selling unregistered securities.The court filing, submitted in the U.S. District Court for the District of Columbia, revealed that the SEC, in its own words, believes the “dismissal of this Litigation is appropriate” as a policy matter. The filing did not specify further legal rationale but reflects a broader policy shift under the Trump administration.

Binance swiftly reacted on social media, calling the dismissal “a huge win.” In its statement, the exchange thanked SEC Chairman Hester Peirce’s successor, Chairman Paul Atkins, and the Trump administration for steering away from the previous regime’s “regulation by enforcement” strategy.

“Thank you to Chairman Atkins and the Trump team for pushing back against regulation by enforcement,” Binance posted on X (formerly Twitter).

This public sentiment underscores how dramatically the SEC’s tone has shifted since the departure of former SEC Chair Gary Gensler, whose aggressive tactics often drew criticism from crypto leaders and investors alike.

The lawsuit had been among the SEC’s most significant enforcement actions in the digital asset space. Alongside a $4.3 billion criminal settlement with the U.S. Department of Justice in 2023, which included admissions of wrongdoing from Binance and CZ, this case helped shape the broader legal landscape for crypto in the U.S.

But by April 2025, signs of a détente had begun to emerge. The SEC and Binance jointly requested case delays and extensions, hinting at behind-the-scenes negotiations that ultimately led to Thursday’s dismissal.

Broader Regulatory Reset Underway

The Binance decision aligns with a larger policy realignment under the Trump administration, which has prioritized collaborative rulemaking over punitive action. The SEC’s newly established Crypto Task Force has recently opened dialogue with major stakeholders, reflecting a move toward engagement and structured policymaking.

The Binance dismissal follows a string of similar developments:

  • Coinbase, Kraken, and ConsenSys reached settlements with the SEC earlier in 2025.

  • Investigations into Circle, Immutable, and others have been quietly closed.

  • Lawsuits against Uniswap and OpenSea were also withdrawn.

This wave of settlements and dismissals points to a clear departure from enforcement-led regulation, ushering in a new chapter for the industry.

What’s Next for Binance and the Crypto Sector?

Although this U.S. legal battle has ended, Binance continues to face regulatory scrutiny in Europe, Asia, and the Middle East. For Changpeng Zhao, who stepped down as CEO in 2023, the conclusion of the SEC case lifts a major burden as the company navigates evolving international frameworks.

While the long-term impact of the SEC’s reversal remains uncertain, Thursday’s decision offers a resounding signal to the crypto community: the tide is turning, and the U.S. government may finally be pivoting toward a more predictable and innovation-friendly approach to digital asset regulation.

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