Key Takeaways
- The U.S. SEC has officially dropped its civil enforcement case against Binance and founder Changpeng Zhao, meaning it cannot reopen the case.
- Binance publicly thanked President Donald Trump and new SEC Chairman Paul Atkins for ending what it called “regulation by enforcement.”
- The dismissal, along with earlier dropped cases like Coinbase’s, reflects a shift in regulatory tone under the Trump administration.
Binance has celebrated the voluntary dismissal of its case by the U.S. Securities and Exchange Commission (SEC).
The world’s largest crypto exchange hailed the dismissal as a win for crypto, thanking U.S. President Donald Trump and SEC Chairman Paul Atkins for “pushing back against regulation by enforcement.”
Binance Celebrates Dismissal
On Thursday, May 29, Binance posted on X calling the dismissal a “huge win for crypto.”
“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,” it wrote.
In a separate statement, a spokesperson called the decision “a landmark moment.”
CCN has reached out to the SEC for comment.
SEC Dismisses Case
The joint stipulation of dismissal was signed by lawyers for the SEC, Binance, and Binance founder Changpeng Zhao on Thursday, May 29.
The SEC stated that dismissing its enforcement case was appropriate “in the exercise of its discretion and as a policy matter.”
The dismissal is also with prejudice, meaning the SEC cannot reopen the case.
“The parties stipulate that this litigation be dismissed with prejudice as to the conduct alleged in the Amended Complaint and without costs or fees to any parties,” the filing stated.
Binance vs. SEC
The dismissal brings an end to a long-running legal battle dating back to 2023, when the regulator charged Binance with:
- Operating an unregistered exchange
- Failing to prevent U.S. investors from accessing Binance.com
- Inflating trading volume
One of the more serious allegations was that Binance and CEO Changpeng Zhao (CZ) mixed customer funds with corporate funds, particularly through an entity known as Merit Peak Limited, which was allegedly under Zhao’s control.
While Binance reached settlements with other agencies, most notably a $4.3 billion deal with the Department of Justice (DOJ) and the Commodity Futures Trading Commission in late 2023, these did not resolve the SEC’s civil case.
As part of the DOJ settlement, Zhao stepped down as CEO and agreed to personally pay a $50 million fine.
CZ also recently served a four-month prison sentence after pleading guilty to failing to establish an anti-money laundering program for the exchange.
Trump’s Influence
In February, a joint request from the SEC and Binance to pause the case for 60 days was approved, following the creation of the SEC’s Crypto Task Force under the Trump administration.
The exchange and regulator said the task force, led by Commissioner Hester Peirce, could potentially “impact and facilitate” a resolution.
According to a Wall Street Journal report, Binance previously attempted to make a deal with the Trump family to help restart its U.S. operations.
The report also claimed that CEO CZ had sought a pardon from the Trump administration, though he vehemently denies those claims.
During his 2024 campaign, Trump promised to be a “crypto president” and pledged to roll back restrictions enacted by former SEC Chair Gary Gensler.
Under the newly appointed SEC Chair, Paul S. Atkins, the regulator has closed several ongoing enforcement cases.
In February, the agency dismissed a high-profile case against Coinbase, which it had previously accused of trading more than 13 unregistered tokens.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
