tl;dr
The SEC filed to drop its long-running lawsuit against Binance, its founder Changpeng Zhao, and Binance.US, which had accused them of selling unregistered securities, allowing U.S. users access improperly, and commingling customer funds. The original lawsuit alleged Binance evaded U.S. securities la...
The Securities and Exchange Commission (SEC) has filed to dismiss its lawsuit against Binance, its founder Changpeng Zhao, and Binance.US. The original suit accused them of selling unregistered securities, allowing U.S. users access improperly, and commingling customer funds through deceptive practices.
Under SEC Chair Gary Gensler, the regulator aggressively targeted crypto companies from 2021 to 2024, suing Binance, Kraken, Coinbase, and others for offering unregistered digital tokens. The lawsuit specifically alleged that Binance evaded U.S. securities laws despite claiming to have compliance controls, with internal communications suggesting awareness of operating as an unlicensed securities exchange.
However, with the Trump administration’s return, the SEC adopted a more crypto-friendly stance, leading to the dismissal of several high-profile crypto cases including this one against Binance. This shift reflects a regulatory pivot favoring industry growth and innovation.
Binance.US welcomed the dismissal, stating it confirms the company did not violate securities laws and allows them to focus on expanding their business and rebuilding relationships impacted by the legal battle.
This development marks a significant milestone, illustrating the evolving regulatory landscape as the SEC balances enforcement with fostering a supportive environment for crypto companies.