SEC drops Binance lawsuit in yet another gift to crypto
Two years after legal proceedings began, the SEC has formally dropped its lawsuit against Binance, the world’s largest crypto exchange. It was one of the US government’s final ongoing actions against crypto companies.
Lawyers for the SEC and Binance jointly moved to dismiss the case in a filing on Thursday. It follows a 60-day pause requested by both parties in February. The case has been dismissed with prejudice, meaning the SEC can’t pursue it again. “We’re deeply grateful to [SEC] Chairman Paul Atkins and the Trump administration for recognizing that innovation can’t thrive under regulation by enforcement,” Binance told Reuters in a statement, calling the dismissal “a landmark moment.”
The SEC sued Binance in 2023, accusing it, and founder Changpeng Zhao, of operating an illegal exchange in the US and defrauding investors, along with a string of other offenses. Binance settled a separate case with the Department of Justice in 2023, which saw the company agree to pay $4.3 billion in fines. Zhao himself stepped down from the company and pled guilty to breaking anti-money-laundering laws, paying $50 million in personal fines and serving a four-month prison sentence.
The SEC dismissal is the latest sign of the Trump administration’s embrace of the cryptocurrency industry. In April it disbanded a DOJ unit dedicated to enforcing cryptocurrency fraud, and already this year the SEC has dropped investigations into both Coinbase and Robinhood. Meanwhile Trump has bolstered the crypto industry by launching a Crypto Strategic Reserve and hosting a private dinner for those willing to back (or short) his own $TRUMP meme coin.