Binance Dodges SEC Bullet as Regulators Wave White Flag in Landmark Crypto Case

In a stunning reversal, the SEC folds its hand against the world’s largest crypto exchange—proving once again that regulators are playing catch-up in a game they don’t understand.

The joint motion to dismiss reveals more about the agency’s weak position than any congressional hearing ever could. After months of saber-rattling, the ’watchdogs’ slink back to their kennels—empty-handed.

Meanwhile, Binance keeps printing money while traditional finance scrambles to pretend they saw this coming. Somewhere in Wall Street, a banker just ordered his third martini before noon.

TLDR

• SEC files joint motion to dismiss lawsuit against Binance after nearly three years of legal proceedings
• Case dismissed “with prejudice,” meaning SEC cannot bring this lawsuit against Binance again
• Dismissal follows Trump administration appointing Paul Atkins as new SEC chairman, replacing Gary Gensler
• Binance thanks new SEC leadership for ending “regulation by enforcement” practices
• SEC has dropped over a dozen crypto-related cases since Trump returned to office in January 2025

The Securities and Exchange Commission filed a joint motion Thursday to dismiss its long-running lawsuit against crypto exchange Binance. The case had been ongoing since June 2023.

The dismissal comes after Donald Trump returned to the presidency and appointed Paul Atkins as the new SEC chairman. Atkins replaced Gary Gensler, who led an aggressive enforcement campaign against crypto companies.

Both the SEC and Binance submitted the joint filing to federal court in Washington. The case is being dismissed “with prejudice,” which prevents the SEC from bringing the same lawsuit against Binance in the future.

Huge win for crypto today. The SEC’s case against us is dismissed.
Thank you to Chairman Atkins & the TRUMP team for pushing back against regulation by enforcement. U.S. innovation is back on track – and it’s just the beginning.

— Binance (@binance) May 29, 2025

The SEC’s court filing stated the dismissal was “appropriate” and an “exercise of its discretion.” The commission said its decision does not reflect its position on other crypto cases.

The original lawsuit accused Binance of operating as an unregistered broker, clearinghouse and exchange. The SEC also alleged the company mishandled customer funds and inflated trading volumes.

Judge Amy Berman Jackson had previously ruled the SEC brought plausible charges against the exchange. She allowed most of the lawsuit to proceed last year.

New Leadership Signals Policy Shift

The dismissal marks a clear departure from the Gensler-era SEC approach to crypto regulation. Paul Atkins has promised to make the United States the “crypto capital of the world.”

Binance praised the new SEC leadership in a statement on social media. The company thanked Chairman Atkins and President Trump for pushing back against enforcement practices.

Former Binance CEO Changpeng Zhao also commented on the dismissal. He took aim at former SEC Chairman Gary Gensler, saying “we are still here.”

The case had been paused earlier this year while the SEC’s new crypto task force worked on developing a regulatory framework. That framework has not yet been published.

Broader Pattern of Case Dismissals

This dismissal continues a pattern of the SEC dropping crypto-related cases since Trump took office. The commission has withdrawn from over a dozen investigations and lawsuits this year.

Other major exchanges like Coinbase, Kraken, Gemini, and Robinhood have also seen their SEC cases dismissed. The commission is still working to resolve its lawsuit against Ripple.

Binance.US expressed satisfaction with the outcome in a statement. The company said the dismissal confirms it did not violate U.S. securities laws.

The exchange said it can now focus on growing its business and restoring relationships affected by the SEC case. Binance.US plans to continue offering crypto access while maintaining compliance commitments.

Last week, Binance announced it WOULD list USD1, a stablecoin from World Liberty Financial. That company has ties to Trump and his family members.

Changpeng Zhao is reportedly seeking a presidential pardon for his 2023 guilty plea in a separate criminal case. The Binance founder served a four-month prison sentence earlier this year.