In a surprising yet telling move, the U.S. Securities and Exchange Commission (SEC) has officially requested to dismiss its landmark lawsuit against Binance and its high-profile founder, Changpeng “CZ” Zhao. The court filing, made public on Thursday, signals yet another significant rollback of regulatory action under the crypto-friendly Trump administration.
Originally filed in 2023, the SEC’s case targeted Binance, its U.S.-based affiliate Binance.US, and CZ himself with serious allegations. These included claims of operating an unlicensed securities exchange, offering unregistered securities to American investors, and mismanaging customer funds. At the heart of the complaint was the accusation that Binance had built what the SEC then called a “web of deceit” to avoid U.S. regulatory scrutiny while continuing to court American clients.
At the time, then-SEC Chair Gary Gensler didn’t mince words. He accused Binance of public posturing while allegedly disregarding compliance protocols behind the scenes. In one particularly memorable line from the complaint, a Binance executive reportedly admitted internally that they were “operating as a f**king unlicensed securities exchange in the USA bro.”
But times have clearly changed.
Under the second term of President Donald Trump, the tone at the SEC has shifted drastically. Led now by Chairman Paul Atkins and supported by prominent crypto advocate Hester Peirce, the Commission is walking back what many in the industry saw as an era of “regulation by enforcement.” This strategic reversal is having sweeping implications—not just for Binance but for the broader crypto landscape in the U.S.
In a statement following the dismissal, a Binance spokesperson called the SEC’s decision a “landmark moment,” crediting Chairman Atkins and the Trump administration for “recognizing that innovation can’t thrive under regulation by enforcement.” The spokesperson added, “The U.S. is back—leading from the front in the future of blockchain.”
Binance.US, which has faced immense reputational and operational pressure since the lawsuit, expressed satisfaction at the outcome. “We are pleased that the SEC fully dismissed its charges against Binance.US, confirming what we have always known—that the company did not violate U.S. securities laws,” the company said in a statement. “Today’s news is a major milestone for our company, as putting this matter to rest allows us to focus entirely on growing our business and restoring relationships impacted by the case.”
This dismissal is not an isolated case. Since President Trump returned to office, the SEC has dialed back on several lawsuits and investigations it pursued aggressively under Gensler’s leadership. Companies like Kraken and Coinbase—once in the regulatory crosshairs—have seen similar legal momentum slow or evaporate entirely.
Trump’s administration has made no secret of its desire to re-establish the U.S. as a global leader in digital asset innovation. His campaign was heavily backed by crypto entrepreneurs and blockchain companies, many of whom had previously been under regulatory siege.
This strategic retreat by the SEC may mark a new era of collaboration rather than confrontation between Washington and the digital asset sector. For Binance and CZ, it not only lifts a heavy legal cloud but also serves as a symbolic victory in their long fight for legitimacy in the American market.
While the dust is still settling, one thing is clear: the U.S. government’s stance on crypto is undergoing a significant recalibration—and the industry is taking notice.
