SEC drops lawsuit in a nearly two-year legal battle against Binance

The U.S. Securities and Exchange Commission (SEC) has officially dismissed its lawsuit against Binance and its founder, Changpeng Zhao, ending a nearly two-year legal battle.

The joint motion, filed on May 29, 2025 by the SEC, Binance and its co-founder Changpeng Zhao, in a Washington, D.C., federal court, requests the dismissal of the SEC's June 2023 complaint with prejudice, meaning the case cannot be reopened in the future.

The SEC's lawsuit accused Binance of operating unregistered securities exchanges, misrepresenting trading controls, and commingling customer funds with company assets.

This civil case was separate from a criminal case resolved in November 2023.

In a separate case Binance and Zhao settled a lawsuit with the Department of Justice back in November 2023, agreed to pay a $4.3 billion for violating anti-money laundering and sanctions laws, and Zhao served a four-month prison sentence.

The dismissal aligns with the SEC's changing approach to cryptocurrency regulation under the Trump administration.

Under SEC Chairman Paul Atkins, the agency has established a "crypto task force" aimed at developing a dedicated regulatory framework for digital assets.

In addition, the motion mentioned the SEC’s crypto task force might impact and facilitate the potential resolution of this lawsuit.

Binance spokeperson welcomed the dismissal, stating it as a "landmark moment" and expressing gratitude to Chairman Atkins and the Trump administration for recognizing that innovation cannot thrive under regulation by enforcement.

The resolution of this case is seen as a positive development in the changing legal landscape of cryptocurrency regulation in the U.S.