The U.S. Securities and Exchange Commission (SEC) has dismissed its high-profile civil enforcement case against Binance and founder Changpeng Zhao, bringing an end to one of the agency’s most aggressive actions against a crypto exchange. Filed in June 2023, the original lawsuit alleged widespread securities law violations by Binance. However, in a joint stipulation filed this week, the SEC agreed to dismiss the case “with prejudice,” meaning it cannot be refiled.
In its litigation release, the SEC stated that the dismissal was a discretionary and policy decision and clarified that this move “does not necessarily reflect the Commission’s position on any other litigation or proceeding.”
Binance quickly took to social media to declare victory, posting: “Huge win for crypto today. The SEC’s case against us is dismissed. Thank you to Chairman Atkins & the Trump team for pushing back against regulation by enforcement. U.S. innovation is back on track — and it’s just the beginning.”
A blog post from Binance further framed the development as a significant win for the company and the broader digital asset ecosystem. It claimed that the SEC’s case was “baseless, unjustified, and politically motivated,” accusing the regulator of harming consumers and stifling innovation by pursuing enforcement rather than providing clear guidance.
While the SEC’s case has now ended, Binance’s regulatory troubles have been far-reaching. The company has previously faced legal action from the CFTC, been denied a VASP license in the Netherlands, and was under investigation in France for potential money laundering. In late 2023, Binance agreed to a $4.3 billion settlement with the U.S. Department of Justice, and Changpeng Zhao pleaded guilty to anti-money laundering violations, stepping down as CEO and handing the reins to Richard Teng.
Despite those challenges, the dismissal of the SEC case marks a pivotal moment for Binance and the crypto industry, signaling potential shifts in regulatory posture as new leadership takes hold in Washington.