In a stunning development for the crypto industry, the U.S. Securities and Exchange Commission (SEC) has moved to dismiss its long-running lawsuit against Binance, the world’s largest cryptocurrency exchange. The case, originally filed in June 2023, was paused earlier this year after Donald Trump returned to the White House, marking a major shift in federal crypto enforcement policy.
Joint Motion to Dismiss — “With Prejudice”
In a joint filing submitted Thursday, the SEC and Binance requested the case be dismissed with prejudice, which means the SEC cannot refile the lawsuit in the future. The motion states:
“In the exercise of its discretion and as a policy matter, the Commission believes the dismissal of this Litigation is appropriate.”
The filing also blocks Binance, its affiliates, and founder Changpeng “CZ” Zhao from pursuing legal action against the SEC in connection with this case.
Policy Pivot: New Crypto Framework in the Works
The dismissal follows the SEC’s decision to pause multiple crypto-related cases earlier this year while it works on a broader regulatory framework for digital assets. Although no official framework has been published yet, a bill was introduced Thursday in the U.S. House of Representatives that aims to divide oversight between the SEC and the Commodity Futures Trading Commission (CFTC).
Context: A Changing SEC Under Trump
Since Trump’s return to office, Commissioner Mark Uyeda has taken over as acting chair, with Paul Atkins recently confirmed as the agency’s new full chair. These leadership changes have significantly altered the SEC’s enforcement posture toward crypto.
This marks at least the 13th crypto-related lawsuit dropped by the SEC since Trump’s re-election, signaling a strong pivot away from the aggressive stance taken during the Biden administration.
Binance Responds: “A Major Milestone”
A Binance.US spokesperson welcomed the decision:
“We are pleased that the SEC fully dismissed its charges against Binance.US, confirming what we have always known — that the company did not violate U.S. securities laws.”
They added that this resolution allows Binance to “focus entirely on growing our business” and “restore relationships impacted by the SEC.”
Trump-Linked Stablecoin USD1 Listed on Binance
This development comes just days after Binance listed USD1, a stablecoin issued by World Liberty Financial, a company with ties to Donald Trump, some of his children, and his affiliates. The move sparked speculation about a closer alignment between the crypto industry and Trump-era policy initiatives.
SEC Commissioner Warns Investors
Despite the softer regulatory tone, SEC Commissioner Hester Peirce warned at Bitcoin 2025 in Las Vegas that crypto investors should not expect government bailouts:
“If you’re investing in speculative digital assets, understand the risks — and don’t expect to be rescued if it goes wrong.”
Conclusion
The SEC’s dismissal of its Binance lawsuit — once a landmark enforcement action — marks a major turning point for U.S. crypto regulation. With Trump allies now steering the agency, and policy efforts shifting toward collaborative frameworks rather than enforcement, the crypto industry could be heading into a new era of regulatory clarity and political backing.