TL;DR
The SEC and Binance have closed their legal dispute that began in 2023, after accusations of operating without proper registration and manipulating information about their internal controls.
The agency dropped the lawsuit against Binance as part of a shift in its regulatory strategy, now prioritizing fair oversight over punitive actions.
The SEC created a dedicated crypto task force to define clear, consistent rules alongside industry firms, leaving behind its previous sanction-driven approach.
The U.S. Securities and Exchange Commission (SEC) has decided to end its prolonged legal case against Binance and its former CEO, Changpeng Zhao.
The lawsuit, filed in 2023, accused the platform of operating without proper registration and providing misleading information about its control systems. The case had been on hold since February after several extensions, but both parties ultimately asked the court to dismiss all claims.
This outcome reflects a modification in the agency’s regulatory strategy, choosing to withdraw the litigation and adopt a more structured approach to crypto asset oversight. According to the document submitted to the court, the SEC considers the dismissal appropriate as a policy decision and does not expect this move to affect other ongoing cases. While this decision doesn’t represent a definitive shift in its stance toward the crypto industry, it does mark a clear break from the strict line it maintained over recent years.
Binance Endured the SEC’s Pressure for Years
Binance called the case’s closure a key moment in its relationship with U.S. regulators and attributed the shift in tone to the leadership of Paul Atkins at the agency’s helm. Although this lawsuit is now behind them, the company previously faced over $4 billion in penalties related to a separate investigation by the Department of Justice.
The SEC also established a crypto-focused task force. This group holds meetings with firms and operators from the sector to build clear, consistent regulations, in sharp contrast to the agency’s prior period marked by punitive measures and ambiguous criteria. Commissioner Hester Peirce publicly backed this radical change, stating that penalties should only be applied when rules are clear and violations are verifiable.
Closing this case removes one of the largest legal challenges facing the company and sets a different tone for the immediate future of crypto regulation in the United States
