The U.S. Securities and Exchange Commission (SEC) has officially dismissed its lawsuit against global cryptocurrency exchange Binance and its founder, Changpeng Zhao, signaling the end of one of the most significant crypto enforcement actions during the Biden administration.

Filed jointly with Binance on Thursday, the voluntary dismissal concludes a legal battle that began in 2023. The lawsuit had accused the company of violating U.S. securities laws through its operations and product offerings, and had stood as a centerpiece of the SEC’s broader crackdown on the crypto industry under Chair Gary Gensler.

This development follows a $4.3 billion settlement reached in November 2023 between Binance, Zhao, and several U.S. agencies, including the Department of Justice. Notably, the SEC was not part of that deal and had continued to pursue separate civil charges. In February 2025, the agency signaled a change in direction by requesting a 60-day pause in the case. This week’s filing confirms the final decision to walk away.

The dismissal comes at a time of growing debate over how digital assets should be regulated in the U.S. Lawmakers are increasingly focused on creating a more defined regulatory framework, and discussions about whether the SEC or CFTC should lead crypto oversight remain ongoing.

With the SEC now out of the picture, Binance faces fewer immediate legal threats in the U.S., although it must still comply with existing regulatory and monitoring obligations. Zhao, who stepped down as CEO as part of last year’s settlement, continues to be a key figure in the crypto community.

The conclusion of this case could influence how other fintech and crypto firms view U.S. markets. It may also mark a shift in how aggressively the SEC pursues enforcement under its current leadership, particularly as industry players push for more clarity and predictability.

The Binance case was seen as a litmus test for federal regulators. Its resolution, without a trial or further penalties from the SEC, suggests a turning point in the evolving relationship between Washington and the crypto sector.

The post SEC Dismisses Lawsuit Against Binance and Founder Changpeng Zhao appeared first on CryptoShrypto.

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Filed under: Bitcoin - @ June 1, 2025 6:15 pm