In a stunning turn of events, the U.S. Securities and Exchange Commission (SEC) has officially terminated its civil lawsuit against Binance, its U.S. affiliate BAM Trading, and co-founder Changpeng Zhao (CZ). This decision, filed on May 29, 2025, closes the high-profile legal saga that began nearly two years ago—and marks a powerful shift in the United States’ stance on crypto regulation.
The case has been dismissed “with prejudice,” meaning the SEC cannot refile the same claims in the future. In a joint filing to the U.S. District Court for the District of Columbia, the SEC cited “discretionary authority and policy considerations” as its reasons for backing down. The agency also emphasized that this outcome does not necessarily signal how it will handle other crypto-related enforcement matters.
But make no mistake: this is more than just a procedural win—it’s a decisive legal and symbolic victory for Binance and CZ, and a broader rejection of regulatory overreach that many in the crypto space have long criticized.
SEC’s Case Collapses Amid Shifting Political Winds
The original lawsuit, filed on June 5, 2023, accused Binance and its executives of violating securities laws and operating an unregistered exchange. For years, it stood as the cornerstone of the SEC’s aggressive crackdown on the crypto industry under former Chairman Gary Gensler.
But with Gensler out and Paul Atkins—a Trump administration ally and pro-crypto advocate—now at the helm, the winds have clearly changed. Atkins has introduced a Crypto Assets Task Force focused on collaboration rather than confrontation, with industry roundtables already underway.
🧵 Binance CEO: “The Tide Has Turned”
New Binance CEO Richard Teng didn’t hold back after the dismissal. In a post on X (formerly Twitter), he declared:
> “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.”
It’s a powerful moment for the exchange and for CZ himself, who has long maintained his innocence in the face of intense regulatory scrutiny. With the criminal prosecution off the table, CZ’s name is—at least legally—cleared.
❓ What Comes Next?
While the legal chapter is closed, several unresolved questions remain:
1. Will the SEC refund the $40 million in fines wrongfully imposed on Binance and CZ?
2. Will CZ receive compensation for reputational and financial damages?
3. Will CZ return to lead Binance, now that his legal shadow has lifted?
The answers will shape the future of Binance—and possibly crypto regulation itself.
A Turning Point for U.S. Crypto Policy?
This dismissal is more than just a win for one company. It signals the beginning of a new era in U.S. crypto oversight—one less defined by hostility and more open to innovation.
For years, critics accused the SEC of stifling American competitiveness in blockchain and Web3 technologies. Now, with a more open-minded regulatory tone and industry voices at the table, the United States may finally reclaim its seat at the forefront of global crypto leadership.
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