SEC Files to Dismiss Long-Running Lawsuit Against Binance
The U.S. Securities and Exchange Commission (SEC) unexpectedly dropped its lawsuit against Binance on Thursday, May 29, 2025, filing a joint motion with the exchange to dismiss the case with prejudice. This means the SEC cannot refile the suit. The filing offered no explanation beyond stating the dismissal was a discretionary policy decision, emphasizing that it doesn’t impact other ongoing litigation. The case, initiated in June 2023, alleged Binance illegally operated as an unregistered broker, clearinghouse, and exchange.
The dismissal comes amidst the SEC’s ongoing efforts to develop a regulatory framework for crypto assets, a task its new crypto task force is undertaking. This coincides with the introduction of a House bill aiming to clarify regulatory oversight of digital assets between the SEC and the Commodity Futures Trading Commission (CFTC). Previously, Judge Amy Berman Jackson had allowed most of the SEC’s charges against Binance to proceed.
Binance.US issued a statement expressing pleasure at the dismissal, emphasizing the company’s compliance and commitment to customers. They plan to focus on business growth and mending relationships affected by the SEC’s actions. The dismissal marks the latest withdrawal for the SEC, which has dropped numerous other crypto-related investigations and lawsuits since the change in administration. This about-face follows the return of Donald Trump to the presidency and the subsequent appointments of Acting Chair Mark Uyeda and Chair Paul Atkins.
The SEC’s actions are noteworthy given its past aggressive stance against crypto exchanges, including Coinbase and Kraken. The dismissal, though unexplained, could signify a shift in the SEC’s approach to crypto regulation under the new leadership. This contrasts with the recent comments from SEC Commissioner Hester Peirce, who cautioned crypto investors against expecting government bailouts. The SEC’s dismissal of its case against Binance remains a significant development in the ongoing evolution of crypto regulation in the United States.
