30-5-2025 – The U.S. Securities and Exchange Commission (SEC) has moved to withdraw its legal action against Binance, the global crypto behemoth, as outlined in a court filing submitted on Thursday in the U.S. District Court for the District of Columbia. The decision, articulated in a joint stipulation between the SEC, Binance, and former Binance CEO Changpeng Zhao, reflects a strategic shift, with the agency deeming dismissal appropriate “as a policy matter” and in the exercise of its discretion.
The lawsuit, initiated in 2023, accused Binance of operating without proper registration and misrepresenting its trading controls. That same year, Binance and Zhao admitted guilt to violations of the Bank Secrecy Act, agreeing to a hefty $4 billion settlement to resolve a separate Justice Department probe. However, the SEC case had been stalled since February, when both parties requested a stay, followed by multiple extensions, leaving the matter in limbo until this week’s development.
Binance hailed the dismissal as a pivotal victory. “This marks a landmark moment,” a company spokesperson declared in an emailed statement, expressing gratitude to SEC Chairman Paul Atkins and the Trump administration for fostering an environment where “innovation can flourish without the shadow of enforcement-driven regulation.” The SEC, while declining to elaborate on specifics, clarified in a litigation release that this dismissal does not necessarily signal its stance on other ongoing cases or proceedings.
The filing also highlighted the establishment of a new SEC crypto task force, which has been engaging with industry stakeholders in recent months. This initiative signals a departure from the approach under former SEC Chair Gary Gensler and the Biden administration, during which the agency pursued aggressive enforcement against major crypto players, including Coinbase, Uniswap, and OpenSea. Notably, several of these high-profile cases have also been dropped in recent months under the new administration.
Speaking at the Bitcoin 2025 conference in Las Vegas earlier on Thursday, Republican SEC Commissioner Hester Peirce cautioned that the softened stance does not equate to a free-for-all in the crypto space. Peirce, a vocal critic of the SEC’s previous heavy-handed tactics, emphasised that enforcement remains a vital tool when clear rules are breached. “Our aim is to apply enforcement where it’s meant to be—targeting clear violations,” she told the audience, acknowledging that fraudulent activities often exploit the crypto banner.
