Binance Triumphs Over the SEC as Lawsuit Subtly Vanishes
In what seems like a significant turning point, the Securities and Exchange Commission has formally ended its legal action against Binance and its founder, Changpeng Zhao. The lawsuit against Binance represented one of the final outstanding confrontations from the government’s earlier crackdown on crypto asset, and now it’s concluded. Just like that.
The Journey So Far
Back in 2023, the SEC launched a vigorous attack. They charged Binance with various dubious activities, including inflating trading volume, allowing U.S. users on unauthorized platforms, and selling crypto tokens that the commission claimed required registration as securities. Additionally, they alleged that the firm was commingling client funds in ways that endangered people’s assets.
NEW: The @SECGov and @binance have jointly filed a stipulation seeking dismissal of the ongoing litigation against the exchange. pic.twitter.com/CiNNbi6WeX
— Eleanor Terrett (@EleanorTerrett) May 29, 2025
Binance had more struggles to contend with. The Department of Justice also took action, resulting in a hefty $4.3 billion settlement. CZ resigned as CEO, settled with a $50 million fine, and adhered to some quite stringent requirements, while still maintaining control of the operation. Thus, while the SEC case was ongoing, a great deal had already unfolded.
What Lawsuit?
Flash forward to May 29, 2025, and the SEC abruptly chose to wrap up the matter. The agency submitted a motion to dismiss the case “with prejudice,” indicating they would not revisit this issue. The submission provided little in the way of clarity, simply stating the SEC reached this decision after re-evaluating the situation.
This conclusion is an understated finale to a highly visible case. No fanfare, no courtroom theatrics, merely a legal document that essentially states, “we’re finished here.”
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Implications
This situation extends beyond just Binance. It’s about the potential trajectory for crypto asset in the United States. The SEC was once quite stringent, pursuing the leading players, using them as examples, and delivering warnings to others. Now it appears that approach might be shelved.
Since Trump’s return to the presidency, there have been notable changes. His administration has advocated for more transparent regulations rather than simply burdening companies with legal actions. SEC Chairman Paul Atkins, appointed during Trump’s term, has been far more amenable to cooperating with the cryptocurrency sector instead of stifling it.
Additionally, this isn’t the first legal battle to vanish. Earlier this year, the SEC also abandoned its lawsuit against Coinbase. Thus, this trend may be emerging.
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What’s Next?
For Binance, this ruling removes a significant obstacle. The firm still needs to work on regaining trust, but from a legal perspective, this is a substantial relief.
For the broader crypto asset industry, this signifies that the pressure may finally be lifting. Regardless of whether you’re a developer, an investor, or just someone intrigued by crypto, the takeaway is clear: the tumult might be over. Now it’s about determining the next steps, ideally with less drama.
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Key Takeaways
- The SEC has officially concluded its lawsuit against Binance and CEO Changpeng Zhao, bringing to a close one of the most prominent legal struggles in cryptocurrency.
- The litigation included serious claims, such as trading volume manipulation, customer fund mismanagement, and the offering of unregistered securities.
- The choice to dismiss the case follows Binance’s earlier $4.3 billion settlement with the DOJ and CZ’s stepping down as CEO back in 2023.
- During Trump’s administration, the SEC has taken a gentler approach, opting for collaboration instead of confrontation with crypto asset firms.
- This marks the second significant case dropped in 2025, indicating a potential trend toward reducing aggressive enforcement measures against crypto in the U.S.
The post Binance Beats the SEC as Lawsuit Quietly Disappears appeared first on 99Bitcoins.
