In a stunning move that signals a potential U.S. policy shift toward cryptocurrency, the U.S. Securities and Exchange Commission (SEC) has officially dismissed its lawsuit against Binance Holdings Ltd and its co-founder, Changpeng Zhao (CZ) — two years after initially accusing the crypto giant of financial misconduct.
What Was the Case About?
Filed in June 2023, the SEC lawsuit accused Binance of:
- Artificially inflating trading volumes
- Diverting customer funds
- Misleading investors about internal controls
- Unlawfully trading unregistered crypto securities
The SEC, under the previous Biden administration, was pursuing multiple crypto enforcement actions — with Binance considered a flagship case.
Why the SEC Dropped the Case
- On May 30, 2025, the SEC filed a joint stipulation of dismissal in Washington, D.C. federal court.
- The case was dismissed “with prejudice” — meaning it cannot be reopened.
- The SEC stated the move was made “in the exercise of discretion and as a policy matter,” not reflecting a broader stance on ongoing crypto cases.
This follows a 60-day pause requested in February 2025, citing the formation of a new crypto regulatory task force by then-acting SEC Chairman Mark Uyeda.
Trump-Era Policy Shift?
Sources, including Reuters, suggest this dismissal reflects a pro-crypto pivot under President Donald Trump, who has appointed more crypto-friendly voices like SEC Chair Paul Atkins.
Binance Reacts
Binance took to X (formerly Twitter), calling the decision:
- “A huge win for crypto”
- A rejection of “regulation by enforcement”
- A landmark moment for the global digital asset industry
What About CZ’s Past Case?
- Changpeng Zhao previously pleaded guilty in Nov 2023 to anti-money laundering violations and paid part of a $4.32 billion penalty.
- He served four months in prison and stepped down as Binance CEO.
- That case was prosecuted by the DOJ, CFTC, and Treasury Department.
