The U.S. Securities and Exchange Commission (SEC) on Thursday voluntarily dismissed its civil lawsuit against Binance, the world’s largest cryptocurrency exchange, signalling a broader regulatory shift under the Trump administration.
The decision follows a series of reversals in enforcement actions against crypto companies as President Donald Trump reenters the White House.
A joint stipulation of dismissal—filed in federal court in Washington, D.C., and signed by lawyers for the SEC, Binance, and founder Changpeng Zhao—formally ended the case with prejudice, meaning the SEC cannot revive it.
The SEC stated that dropping the case was appropriate “in the exercise of its discretion and as a policy matter,” but clarified that the dismissal does not indicate its position on other ongoing crypto-related litigation.
A Binance spokesperson hailed the move as a “landmark moment” and credited SEC Chairman Paul Atkins and the Trump administration for fostering a regulatory climate more supportive of innovation. “We’re deeply grateful… for recognizing that innovation can’t thrive under regulation by enforcement,” the spokesperson said.
The case, filed in June 2023, accused Binance of inflating trading volumes, diverting customer funds, and facilitating the trading of tokens the SEC under President Biden had classified as unregistered securities. It was separate from Binance’s $4.32 billion settlement last November for violating federal anti-money laundering and sanctions laws. Zhao also served a four-month prison sentence for related violations.
The SEC’s move follows its February decision to drop a similar case against Coinbase, the largest U.S.-based crypto exchange. That suit had alleged Coinbase arranged trading in at least 13 unregistered securities.
SEC Chairman Paul Atkins has signalled a new direction, emphasizing a clear and consistent regulatory framework over aggressive enforcement. “Establishing rules of the road while discouraging bad actors is a top priority,” Atkins said on May 12.
Despite the dismissals, the SEC is not abandoning oversight. On May 20, the agency sued crypto startup Unicoin for allegedly raising over $100 million by fraudulently promoting tokens backed by unverified assets. Still, several crypto enforcement actions launched under former SEC Chair Gary Gensler have since been withdrawn or delayed.
Trump, who has pledged to be a “crypto president,” has vowed to roll back the regulatory crackdowns that intensified during Biden’s term, marking a new chapter in how digital assets are governed in the U.S.
