The U.S. Securities and Exchange Commission (SEC) has voluntarily dismissed its 2023 lawsuit against Binance and its founder, Changpeng Zhao (CZ). Filed in Washington, D.C., federal court, the dismissal comes with prejudice, preventing the SEC from reopening the case. This decision aligns with the SEC’s evolving approach to cryptocurrency regulation under President Donald Trump’s administration, which contrasts with the stricter stance taken under former President Joe Biden .Reuters
Background of the Lawsuit
The SEC’s lawsuit, initiated in June 2023 during Gary Gensler’s tenure as SEC Chair, accused Binance of operating unregistered securities exchanges, misleading trading controls, and commingling customer and company funds. Binance denied these allegations and had previously faced a criminal case, culminating in a $4.3 billion penalty and Zhao serving four months in prison .WSJReuters
Dismissal and Regulatory Shift
The SEC emphasized that the decision to dismiss the lawsuit was a discretionary policy matter, not indicative of its position on other crypto-related litigation. This move reflects the Trump administration’s broader efforts to foster innovation in the cryptocurrency sector by stepping back from the strict enforcement policies of the previous administration. The SEC has established a new “crypto task force” to develop a more supportive regulatory framework for the digital asset sector .WSJ
Market Reaction
Following the dismissal, Binance’s native token, BNB, experienced a slight decline in value. As of the latest data, BNB is trading at approximately $676.10, a decrease of about 1.7% from the previous close. The intraday high was $689.78, and the low was $674.22 .
Implications for the Crypto Industry
The dismissal of the SEC’s lawsuit against Binance is seen as a victory for the cryptocurrency industry, signaling a potential shift towards clearer and more supportive regulatory frameworks. Industry leaders hope this development will encourage further innovation and investment in the digital asset space .
