The U.S. Securities and Exchange Commission (SEC) has dismissed its high-profile lawsuit against Binance, the world’s largest crypto exchange by volume, and its founder, Changpeng “CZ” Zhao.
The dismissal of the SEC Binance lawsuit was filed Thursday in the U.S. District Court for the District of Columbia, marking a pivotal moment in U.S. crypto enforcement policy.
Ends Long-Running Legal Battle
The decision to drop the SEC Binance case was made jointly by the SEC and Binance legal teams, and the court approved the motion with prejudice, barring the SEC from refiling the same claims.
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The dismissal marks the symbolic conclusion of a multi-year standoff between U.S. regulators and the world’s largest crypto exchange.
Back in 2023, Binance settled separate criminal and civil charges with the Department of Justice and other federal agencies, agreeing to a record $4.3 billion in penalties for anti-money laundering and sanctions violations.
As part of that settlement, CZ stepped down as CEO, pleaded guilty, and later served a four-month prison sentence in 2024.
A Changing U.S. Regulatory Landscape
The SEC Binance case was central to a broader crackdown on crypto firms under former SEC Chair Gary Gensler. Major players like Coinbase and Kraken also faced intense scrutiny.
However, under new leadership from Chairman Paul Atkins, the SEC has adopted a more crypto-friendly approach, dropping multiple enforcement cases in recent months.
In a parallel development, the Department of Justice recently disbanded its crypto-focused investigative unit, another signal of shifting regulatory priorities in Washington.
Binance’s $2B Partnership Involves Trump-Linked WLF
The end of the SEC Binance lawsuit comes just weeks after Binance entered into a partnership with World Liberty Financial (WLF) at the end of April. The crypto firm has attracted attention for allegedly directing 75% of its profits to entities linked to the Trump family.
As part of the partnership, Binance is expected to receive a $2 billion investment from Abu Dhabi-backed firm MGX, entirely in USD1, a newly launched stablecoin from WLF, backed by U.S. Treasuries and other cash equivalents.
Why This Matters
The dismissal of the SEC Binance lawsuit signals a cooling regulatory climate for crypto in the U.S., but it also raises fresh questions about political influence and the blending of public and private interests.
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Binance is the world’s largest cryptocurrency exchange by trading volume, offering crypto trading, wallets, and other financial services.
Binance’s Secure Asset Fund for Users (SAFU) serves as a backup fund designed to safeguard user assets on the Binance platform during emergencies.
