SEC Drops Bombshell: Binance Lawsuit Abruptly Withdrawn—Crypto Markets Roar Back

In a move that sent shockwaves through digital asset markets, the U.S. Securities and Exchange Commission suddenly dropped its high-profile case against Binance today. Trading volumes spiked 40% within minutes—because nothing makes crypto traders FOMO harder than regulatory whiplash.

The backstory: The SEC had accused Binance of operating an unregistered securities exchange, but today’s court filing simply stated the case was ’no longer in the public interest.’ No further explanation—just the sound of champagne corks popping at hedge funds that went heavy on BNB last week.

What happens next? Analysts predict a 72-hour window of irrational exuberance before everyone remembers the CFTC still has three active investigations pending. Meanwhile in Washington, lobbyists are already drafting bills to ’protect retail investors’—by which they mean creating new compliance hurdles that only Wall Street can afford to navigate.

Breaking News for Binance

According to a report by Reuters, the SEC has decided to withdraw its lawsuit against Binance. Previously, there had been a request to freeze the lawsuit for settlement discussions. Now, the lawsuit is being completely dropped. Lawsuits against other big names in the crypto industry like Ripple$2, Coinbase, Metamask, and Uniswap have also been dismissed.

With the announcement, the price of Binance Coin (BNB) surged to $681, and Bitcoin (BTC)$106,233 returned to $106,000. Since November, there had been speculation that the new SEC administration would drop all lawsuits that do not involve fraud. There are currently no significant cryptocurrency lawsuits left over from the Gensler administration. In previous statements, the SEC had indicated that continuing these lawsuits while the regulatory process was underway was not right, but emphasized that no exceptions would be made for those violating the rules once they were established.

Now that the lawsuit against Binance has also been dropped, the only concern left for investors is the pressure related to tariffs. As the date of July 9 approaches, we will observe how tariffs will keep the markets occupied and what the medium-term market effects will be.