A major legal victory reshapes the future of crypto regulation in the United States.
The SEC has terminated its lawsuit against Binance and CZ. The case is closed. This is a decisive legal triumph for Binance, dealing a massive blow to aggressive cryptocurrency oversight in the U.S. The SEC’s case collapsed due to bias, marking a turning point in regulation.
On May 29, the U.S. Securities and Exchange Commission (SEC) announced that it has officially dismissed its civil lawsuit against Binance Holdings Ltd., BAM Trading Services Inc., BAM Management US Holdings Inc., and Changpeng Zhao (CZ).
A joint statement filed by the SEC and the defendants in the U.S. District Court for the District of Columbia closes the case, originally filed on June 5, 2023. BAM Trading Services operates Binance, the U.S.-based cryptocurrency trading platform.
The lawsuit was dismissed “with prejudice,” preventing the SEC from refiling the same claim in the future. In its statement, the securities regulator clarified:
> Pursuant to its discretionary authority and based on policy considerations, the Commission has determined that dismissal of this action is appropriate.
The SEC emphasized that this move should not be interpreted as an indication of how it might handle other enforcement matters. The joint statement added: “The Commission’s decision to seek dismissal of this litigation does not necessarily reflect the Commission’s position on any other litigation.”
The closure of the case marks the end of a key chapter in the regulator’s broader efforts to establish control over major cryptocurrency trading platforms.
Following the announcement, Binance CEO Richard Teng reacted to the decision on the social media platform X, writing:
> The tide has turned. The SEC’s case against us has been dismissed – justice has finally prevailed. Huge credit to Chairman Atkins and the Trump administration for standing up to overregulation. The U.S. is back, ready to lead the world in blockchain innovation.
Following Gary Gensler’s departure, new Chairman Paul Atkins, who supports the Trump administration’s focus on fostering cryptocurrency development, has shifted the agency into a collaborative mode.
The newly established SEC Crypto Assets Task Force is currently holding roundtables with industry participants, signaling a shift from enforcement to collaborative rulemaking.
Finally, CZ’s name is no longer tainted by criminal prosecution. However, three questions remain unresolved:
1. Will the SEC refund the $40 million fine wrongfully imposed on the exchange and CZ’s personal fine?
2. Will the SEC compensate for CZ’s moral damages and the exchange’s lost profits?
3. Will CZ himself return to the role of Binance’s leader?