Washington, D.C. – May 2025. Binance, the largest cryptocurrency exchange in the world, achieved a significant victory this week when the U.S. Securities and Exchange Commission (SEC) decided to withdraw its civil lawsuit against the company and its former CEO, Changpeng Zhao (CZ). The decision marks an important turning point in the regulatory policy of the new administration and could have a lasting impact on the crypto industry.
According to court documents filed on Thursday in the U.S. Federal Court in Washington, D.C., the SEC and the defendants (Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings Inc., and Changpeng Zhao) voluntarily agreed to dismiss the case "with prejudice." This means that the SEC will not be able to refile the same lawsuit in the future.
The lawsuit, which was filed in 2023 under the presidency of Gary Gensler, accused Binance of operating as an unregistered securities exchange, artificially inflating trading volumes, and mixing customer funds with the company's funds. Although Binance has always denied these accusations, it had previously agreed to pay a fine of $4.368 billion for violations of anti-money laundering laws, and CZ served a four-month prison sentence after pleading guilty to a related misdemeanor.
With the arrival of Paul Atkins as the new SEC chairman, confirmed by the Senate in April 2025, there has been a shift in regulatory focus. Atkins, known for his more favorable stance towards cryptocurrencies, has expressed his intention to develop a clearer and less restrictive regulatory framework for digital assets.
"We are committed to fostering innovation while protecting investors, and we believe that withdrawing this case is consistent with that approach," Atkins stated in a recent announcement.
This dismissal adds to other similar decisions by the SEC under the new administration, which has also closed cases against companies like Coinbase and Ripple. Industry analysts believe this shift could open the door to accelerated growth in the crypto industry in the United States.
However, some experts warn that overly lax regulation could facilitate fraudulent practices if adequate oversight mechanisms are not implemented. "It is crucial for authorities to balance innovation with consumer protection to avoid another scenario like FTX," noted an analyst from CoinDesk.
In conclusion, the SEC's withdrawal of the case against Binance not only represents a legal victory for the company but also a paradigm shift in the relationship between regulatory authorities and the crypto industry in the United States. It remains to be seen how the new policies will be implemented and what impact they will have on the market in the coming months.
