In a recent court filing, the US Securities and Exchange Commission has opted to dismiss its long-standing lawsuit against cryptocurrency exchange Binance. The decision was made without providing any explanation.
The SEC and Binance jointly submitted a motion to pause the case, citing the SEC's new crypto task force's efforts to establish a regulatory framework for cryptocurrency assets. According to the joint filing, 'the Commission believes the dismissal of this litigation is appropriate as a policy matter.' However, it also stated that this decision does not necessarily reflect the Commission's stance on other ongoing litigation or proceedings. Although the SEC has yet to publish a regulatory framework, US lawmakers introduced a formal bill earlier on Thursday to define how the SEC and the Commodity Futures Trading Commission will oversee digital assets.
The parties involved are seeking to have the case dismissed with prejudice, which would prevent the SEC from pursuing this lawsuit against Binance in the future. The filing also includes provisions to prevent Binance or its affiliated entities and executives from filing a lawsuit against the SEC related to the initial lawsuit, which was filed in June 2023 against Binance, Binance.US, and its founder Changpeng 'CZ' Zhao.
Judge Amy Berman Jackson, who is overseeing the case, previously ruled that the SEC had presented plausible charges against the exchange, allowing most of the lawsuit to proceed last year. An external spokesperson for Binance.US expressed satisfaction with the SEC's decision to fully dismiss the charges, stating that it confirms the company's compliance with US securities laws.
The spokesperson added that this development marks a significant milestone for the company, enabling it to focus on growth and restoring impacted relationships. The recent filing is the latest in a series of withdrawals by the SEC, which has already dropped over a dozen investigations and lawsuits.
Prior to 2025, the SEC was actively investigating non-fungible token marketplaces and suing cryptocurrency exchanges, including Binance, which was alleged to be operating as an unregistered broker, clearinghouse, and exchange. The SEC's change in stance occurred after Donald Trump resumed office as US President and appointed Commissioner Mark Uyeda as acting chair, as well as nominating Paul Atkins as the agency's full chair. Atkins was confirmed and sworn into office last month. Last week, Binance announced that it would list USD1, a stablecoin issued by World Liberty Financial, a cryptocurrency company tied to Trump and some of his affiliates.
During an appearance at Bitcoin 2025 in Las Vegas, SEC Commissioner Hester Peirce cautioned some cryptocurrency investors not to expect a bailout or government protection if they invest in speculative digital assets.