SEC Abandons Legal Action Against Binance in a Pivotal Ruling

The U.S. Securities and Exchange Commission (SEC) has officially withdrawn its lawsuit against cryptocurrency exchange Binance, marking a significant enforcement action in the crypto industry. Announced by Binance, the dismissal followed a joint petition by the SEC, Binance, and former CEO Changpeng Zhao, submitted to a federal court.

The regulator clarified that the decision to drop the case was a policy matter and does not relate to its stance on other crypto-related lawsuits. The lawsuit, which cannot be reopened, accused Binance and Zhao of violating securities laws, mishandling customer funds, and misleading investors.

The SEC has been revising its approach to crypto regulation under President Donald Trump’s second administration, with cases against other firms like Coinbase, Ripple, and Kraken also being dropped or settled.