After two years of legal battles, the SEC has officially withdrawn its lawsuit against Binance, the largest cryptocurrency exchange globally. This move marks the conclusion of one of the last ongoing legal actions by the US government against cryptocurrency firms.
On Thursday, attorneys for both the SEC and Binance submitted a joint motion to dismiss the case. This follows a 60-day pause that both parties requested back in February. The case has been dismissed with prejudice, preventing the SEC from reinitiating it. Binance expressed gratitude in a statement to Reuters, thanking SEC Chairman Paul Atkins and the Trump administration for acknowledging that innovation cannot flourish under regulatory enforcement, calling the dismissal “a landmark moment.”
The SEC had filed a lawsuit against Binance in 2023, alleging that it, along with founder Changpeng Zhao, was operating an illegal exchange in the United States and defrauding investors, among various other accusations. Additionally, Binance reached a settlement with the Department of Justice in 2023, agreeing to pay $4.3 billion in fines. Zhao resigned from the company and pleaded guilty to violations of anti-money-laundering laws, resulting in a personal fine of $50 million and a four-month prison sentence.
The SEC’s decision to dismiss the case signals a growing acceptance of the cryptocurrency sector by the Trump administration. In April, it dissolved a DOJ unit focused on combating cryptocurrency fraud, and earlier this year, the SEC has also ceased investigations into Coinbase and Robinhood. In a further boost to the crypto industry, Trump has announced the establishment of a Crypto Strategic Reserve and hosted a private dinner for supporters of his $TRUMP meme coin.
