SEC Drops Lawsuit Against Binance and CZ “With Prejudice”

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The U.S. Securities and Exchange Commission (SEC) has officially dismissed its high-profile lawsuit against Binance and founder Changpeng Zhao (CZ). This historic reversal, filed on May 29, 2025, could mark a major turning point in how digital assets are regulated in the United States.

SEC Ends Legal Battle With Binance: Case Dismissed “With Prejudice”

After nearly two years of intense litigation, the SEC announced it has voluntarily dismissed its case against Binance and CZ with prejudice, meaning it cannot be refiled in the future. The decision was made “in the exercise of discretion,” according to a joint court filing by the SEC and Binance’s legal team.

“We’re witnessing a regulatory inflection point,” said Carol Hughes, legal analyst at Web3 Policy Watch. “Dismissing this lawsuit signals a shift away from the previous administration’s aggressive crackdown.”

While the SEC clarified that this doesn’t reflect its views on other crypto cases, the implications are loud and clear: regulatory attitudes in Washington are evolving.

A Timeline of the Binance-SEC Saga

Date	Milestone
June 2023	SEC files suit against Binance, alleging securities fraud
Dec 2024	CZ steps down as CEO and pleads guilty in DOJ settlement
Jan 2025	Binance agrees to a $4.3B fine with multiple U.S. agencies
May 29, 2025	SEC dismisses lawsuit “with prejudice”

The original lawsuit accused Binance of artificially inflating volumes, commingling customer funds, and facilitating unregistered securities trading. Though Binance settled separate criminal charges with the DOJ last year, the SEC’s civil case had remained unresolved, until now.

Binance SEC news — SEC vs Binance lawsuit

Regulatory Winds Changing Under Trump-Backed SEC Chair

The lawsuit’s dismissal comes amid a broader shift in the SEC’s regulatory tone under Chair Paul Atkins, appointed by President Donald Trump. Atkins, a known crypto moderate, has prioritized industry engagement over litigation.

Under his leadership, the SEC recently launched a digital assets task force aimed at writing a “fair, innovation-friendly” framework for crypto.

“We’re moving from courtroom battles to conference room dialogues,” said Jay Matheson, policy director at Blockchain Americas. “This change opens the door to constructive regulation rather than regulatory warfare.”

Crypto Industry Reacts: Relief, Optimism, and a Cautious Cheer

Binance called the ruling a “landmark moment for innovation.” In an official statement, the exchange thanked the SEC and Chairman Atkins for “recognizing the importance of crypto’s role in the global financial system.”

Industry reaction was largely positive across social media and major platforms like X (formerly Twitter) and Reddit.

“It’s not just a win for Binance, it’s a win for clarity,” one Reddit user posted.

That said, some critics argue this dismissal could embolden bad actors unless clear guidelines and enforcement mechanisms follow.

crypto regulation USA — SEC vs Binance lawsuit

Market Impact: BNB Rises on the News

Binance Coin (BNB), the native token of the Binance ecosystem, jumped modestly following the announcement.

Token	Price (May 30)	24H Change	Market Cap
BNB	$670.29	+3.8%	$103.2 billion

Investors appear cautiously optimistic that a more constructive regulatory climate will attract institutional capital and support long-term project development across the sector.

What’s Next for U.S. Crypto Regulation?

The end of the SEC-Binance case may set a precedent. Other pending crypto lawsuits, against platforms like Coinbase, Ripple, and Kraken, are now under renewed scrutiny.

Will the SEC take a similar path with those players? Or was this an isolated pivot?

“The crypto sector has a rare window now to engage with regulators proactively,” said Hughes. “If the industry fails to self-regulate and work with agencies like the SEC, this detente may not last long.”