Binance Beats the SEC: Lawsuit Dropped in Major Crypto Victory

Binance and CZ Dodge the Bullet as SEC Pulls the Plug on Lawsuit

Hold onto your hats, crypto fans! The U.S. Securities and Exchange Commission just threw in the towel on its high-stakes lawsuit against Binance and its charismatic co-founder, Changpeng "CZ" Zhao. That's right, the case is officially over, done, kaput!

The drama unfolded with a joint motion to dismiss filed in a Washington, D.C. federal court on May 29. Remember that bombshell complaint from June 2023? The SEC had accused Binance of playing fast and loose with customer assets, juicing up trading volumes, and sneakily letting U.S. investors onto its unregistered global platform. Talk about a wild ride!

But wait, there's more! The SEC also claimed Binance was illegally pushing tokens like Solana (SOL) and Cardano (ADA), labeling them as securities. The complaint got even juicier with an update in October 2024, spilling more tea on Binance's alleged shenanigans.

Now, get this: the SEC's latest filing puts the final nail in the coffin, dismissing the lawsuit "with prejudice." That means they can't come back and refile the same claims. The SEC says it's all about "discretion and policy," but don't expect this to set a new standard for how they handle future crypto cases.

This rollercoaster case had two pit stops in 2025, pausing in February and April. Why? Because a new crypto task force, led by acting SEC Chairman Mark T. Uyeda, hit the scene. The parties hinted that the task force's work could be the key to settling things. And boy, did it ever! This week's filing shows the SEC is ready to switch gears from cracking down to crafting policies.

Binance didn't waste a second celebrating on X, calling the dismissal a "huge win for crypto." They gave a big shoutout to President Trump and current SEC Chair Paul Atkins for steering the agency away from what they call "regulation by enforcement." Binance is feeling the love, saying, "U.S. innovation is back on track – and it's just the beginning."

Let's not forget, this bombshell comes over a year after Binance settled with the U.S. Department of Justice in November 2023. They coughed up a whopping $4.3 billion and admitted to some serious charges like money laundering and sanctions violations. As part of the deal, CZ took a hit, serving four months in the slammer and stepping down as CEO.

And guess what? The SEC isn't just letting Binance off the hook. They've been hitting the brakes on other big crypto companies lately, like Coinbase, Consensys, and Kraken. It's a clear sign of a new direction under the Trump administration, with pro-crypto appointees taking the wheel and steering the ship.