SEC dismisses Binance lawsuit amid regulatory shift in crypto

The Securities and Exchange Commission (SEC) on Thursday dropped its two-year lawsuit against Binance, the world’s largest crypto exchange, continuing the Trump administration’s retreat from crypto enforcement.

Filed “with prejudice” in a Washington, D.C. court, the dismissal permanently ends allegations that Binance and founder Changpeng Zhao misled investors, manipulated trading volumes, and enabled trading of unregistered tokens.

The SEC clarified the decision was made at its discretion and did not reflect its position on digital assets.

The lawsuit, filed in June 2023, was separate from Binance’s November 2023 guilty plea to criminal charges, including violations of anti-money laundering laws, resulting in a $4.32 billion penalty.

The SEC also dropped a case against Coinbase in February, suggesting continued reevaluation of crypto regulation enforcement.

Meanwhile, President Donald Trump and his family have become major crypto supporters. Their firm, World Liberty Financial, recently helped broker a $2 billion Binance deal.

Trump Media is raising $2.5 billion to invest in Bitcoin, raising concerns about potential conflicts of interest as Trump advocates for less stringent crypto oversight.