Regulator’s decision not to continue legal action marks end of era of “regulation by enforcement,” exchange giant says.
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Posted May 30, 2025 at 9:51 am EST.
The U.S. Securities and Exchange Commission has dropped its lawsuit against Binance, the world’s largest crypto exchange, ending one of the last major crypto enforcement actions initiated during the Biden administration.
The SEC and Binance filed a joint stipulation in U.S. District Court for the District of Columbia requesting the dismissal of the lawsuit, which had been paused since February, when both sides sought to facilitate a potential resolution and review the implications of a newly established SEC crypto task force.
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The case, originally filed in June 2023, accused Binance and its founder, Changpeng “CZ” Zhao, of operating as an unregistered securities exchange and broker-dealer, unlawfully serving U.S. customers, inflating trading volumes, mixing customer funds, and misleading investors about trading controls.
The SEC also alleged that Binance had allowed U.S. traders to access its offshore exchange, mishandled customers’ funds, and offered unregistered securities.
“Huge win for crypto today. The SEC’s case against us is dismissed,” Binance said on X. “Thank you to [SEC] Chairman [Paul] Atkins & the Trump team for pushing back against regulation by enforcement. U.S. innovation is back on track — and it’s just the beginning.”
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