Binance Wins Big as SEC Dismisses Lawsuit With Prejudice
The U.S. Securities and Exchange Commission (SEC) has dismissed its lawsuit against Binance, marking a milestone development for the crypto industry. The dismissal of the suit was filed on May 29, 2025, in the U.S. District Court for the District of Columbia, ending a legal battle that began in June 2023.
The SEC had alleged Binance engaged in illegal activities, including serving U.S. customers without proper registration, inflating trading volumes, misappropriating customer funds, and allowing trades in unregistered securities.
The case was dismissed with prejudice, preventing the SEC from refiling the same claims and granting Binance clear legal resolution.
Following a November 2023 $4.3 billion settlement, in which Binance founder Changpeng Zhao pleaded guilty to money-laundering charges, resigned as CEO, and served a four-month prison sentence, he was released in September 2024.
SEC’s Crypto Crackdown Fades Under Trump’s Innovation-Friendly Policies
The Binance dismissal is just a part of an overall crypto enforcement reversal under the Trump administration, which has adopted a pro-crypto stance.
Since January 2025, the SEC has dropped over a dozen cases against crypto firms, including Binance, and revoked Staff Accounting Bulletin 121, a rule that previously limited banks’ involvement in crypto markets.
In February 2025, the SEC issued guidance on meme coins, a decision toward a more transparent and clearer policy. SEC Commissioner Hester Peirce has advocated for policies that support innovation while maintaining fraud oversight.
The Department of Justice has shut down its crypto enforcement division as well, and the Commodity Futures Trading Commission will be led by a crypto-friendly venture capitalist, making the regulatory environment more friendly towards the industry.
Post-Lawsuit, Binance Expands as Crypto Industry Eyes Bright Future
Binance’s legal victory comes at a time when the exchange is advancing with its global expansion efforts, including a $2 billion investment from Emirati state fund MGX, brokered by the Trump family’s World Liberty Financial through the USD1 stablecoin.
The crypto community has welcomed the SEC’s decision, with enthusiasts describing it as a “landmark moment” and a “legal surprise.”
The dismissal may reduce regulatory pressure for other exchanges as well, such as Coinbase and Kraken.
Despite this, there are still fears of conflicts of interest since the Trump family’s $TRUMP token, with a $2.4 billion market cap, is favored by the administration’s pro-crypto policies.
Reports show that 75% of World Liberty Financial’s profits are directed to Trump-linked entities, raising questions about regulatory impartiality. While Binance secures its worldwide presence, the sector expects more development, albeit with stakeholders calling for balanced regulation to uphold integrity.
