SEC Drops Binance Lawsuit In Shift Toward Crypto-Friendly Regulation

The US Securities and Exchange Commission (SEC) has dismissed its 2023 civil lawsuit against Binance and its Founder, Changpeng Zhao, marking another shift in the regulatory approach to cryptocurrencies under the Trump administration.

The case had accused Binance of inflating trading volumes, misusing customer funds, and misleading investors. The dismissal, filed in a Washington DC court, was made with prejudice, preventing the SEC from refiling. This decision follows a broader change in crypto enforcement since Donald Trump returned to office. The case was separate from Binance’s earlier settlement with the authorities. The SEC also dropped its case against Coinbase in February. SEC Chairman Paul Atkins has stated that establishing clear rules for crypto markets will be a regulatory focus going forward.

The SEC stated the dismissal was made “in the exercise of its discretion and as a policy matter,” reflecting its evolving stance on digital assets.