Catenaa, Friday, May 30, 2025- The US Securities and Exchange Commission on Thursday moved to dismiss its long-running lawsuit against Binance and its former CEO Changpeng Zhao, signaling a marked shift in how the agency plans to regulate the cryptocurrency sector.
Binance Statement is here. SEC Statement is found here.
The SEC and Binance filed a joint stipulation in the US District Court for the District of Columbia, formally requesting the case be dropped.
The lawsuit, originally filed in 2023, accused Binance of operating as an unregistered exchange and misleading users about its trading controls. The case had been on hold since February amid multiple extension requests.
“In the exercise of its discretion and as a policy matter, the Commission believes the dismissal of this litigation is appropriate,” the SEC stated in the filing.
The agency declined further comment but emphasized the decision does not reflect a broader stance on other ongoing cases.
Binance, in a statement, called the dismissal a “landmark moment” and credited regulatory openness under Chairman Paul Atkins and the Trump administration for the change in tone. The company previously paid over $4 billion in penalties related to a separate DOJ investigation.
Thursday’s court filing also referenced the SEC’s new crypto task force, formed as part of its broader policy recalibration. The group has been meeting with industry stakeholders to develop a more structured approach after the high-profile enforcement streak under former Chair Gary Gensler.
Commissioner Hester Peirce affirmed the agency’s shift, stating enforcement should only apply when “there are clear rules and people violate them.”
