In a plot twist worthy of a crypto soap opera, the U.S. Securities and Exchange Commission (SEC) is officially dropping its long-running lawsuit against crypto giant Binance. On May 29, the SEC, Binance, and co-founder Changpeng Zhao jointly asked a Washington, D.C. federal court to toss out the complaint filed back in June 2023. Yep, you read that right, the SEC is backing down from policing this crypto titan, at least for now.
The joint motion cheekily mentions the SEC’s Crypto Task Force might help smooth things out, and the agency thinks dropping the suit “in the exercise of its discretion and as a policy matter” is the classy move. Oh, and they want the lawsuit dropped with prejudice, meaning no reruns. This lawsuit sequel is officially canceled.
The Backstory - Fines, Prison Time, and CEO Shake-Ups
The SEC originally sued Binance, Zhao, and their U.S. arm, BAM Trading, for allegedly breaking securities laws, mishandling funds, and hoodwinking customers. But the drama doesn’t end there. Binance and Zhao already settled a separate $4.3 billion DOJ case in November 2023, admitting to sanctions violations, unlicensed money transmitting, and sloppy Anti-Money Laundering controls.
As part of that deal, Zhao stepped down as Binance CEO, took a guilty plea on a money laundering charge, and even served four months in prison in April 2024. Binance took to X to call this dismissal a “huge win for crypto,” giving shoutouts to President Donald Trump and SEC Chair Paul Atkins for pushing back against “regulation by enforcement.”
Huge win for crypto today. The SEC’s case against us is dismissed.
— Binance (@binance) May 29, 2025
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.
SEC’s Crypto Chill Under New Leadership
This lawsuit drop isn’t an isolated incident. It’s part of a broader SEC retreat from aggressive crypto crackdowns initiated under previous administrations. Since Trump’s crypto-savvy appointment of former lobbyist Paul Atkins as SEC head, the agency has been easing up, dropping or settling cases against Coinbase, Kraken, Consensus, and more. Investigations into Circle, Immutable, and OpenSea have also been shelved.
Atkins is keen on building a clear digital asset framework and has been busy hosting industry roundtables to hash out crypto policy. Looks like the SEC is trading in its gavel for a negotiation table, at least for now.
Andrew Madison
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