Breaking: US SEC Files To Dismiss Binance Lawsuit; Is A Trump Pardon for CZ Next?

After nearly three years of legal back-and-forth, the US Securities and Exchange Commission (SEC) is shutting down its case against Binance. Both parties have submitted a joint filing, bringing the long-running Binance lawsuit to a close.

The US SEC Voluntarily Ends Binance Lawsuit

Early reports trickling in reveal that the US SEC is bringing down the curtains on its lawsuit against Binance and its founder, Changpeng Zhao. According to a Reuters report, the SEC has reached an agreement with Binance to voluntarily dismiss the drawn-out case.

Parties formally filed a joint stipulation of dismissal in a US federal court in Washington, signed by their legal representatives. Going forward, the SEC’s decision to call a truce on the Binance lawsuit signals an end to the era of crypto regulation by enforcement.

“Huge win for crypto today,” said Binance in a statement on X. “The SEC’s case against us is dismissed.”

In a separate statement, the Commission described the dismissal as appropriate, tagging it an exercise of its discretion. The court filings reveal that the SEC’s dismissal is with prejudice, limiting the securities watchdog from reopening the case against the largest cryptocurrency exchange.

Binance in an official tweet thanked SEC chairman Paul Atkins and President Trump for pushing back against enforcement regulatory practices. Ex Binance CEO also took a jab at former SEC chairman Gary Gensler, saying “we are still here”.

Back in 2023, US SEC accused Binance of breaching US capital market laws, listing tokens the Commission deemed securities. Furthermore, the SEC alleged that the exchange mishandled customer funds and illegally inflated trading volumes. Earlier, this year in April both SEC and Binance agreed to pause legal proceedings for 60 days. 

The lawsuit dismissal follows a streak of regulatory and innovation wins by the exchange, including the recent $1.76 billion FTX lawsuit case.

Paul Atkins-Led SEC Signals Departure From The Gensler Years

The recent Binance lawsuit dismissal is a clear departure from the Gary Gensler-led SEC, which appeared to crack down on the cryptocurrency industry. However, new SEC Chair Paul Atkins is signaling a changing landscape, underscored by clear regulations and a less aggressive approach.

Upon taking over the reins of leadership in the Commission, Paul Atkins vowed to make the US the crypto capital of the world. Furthermore, shuttering the Binance lawsuit brings the US one step closer to the lofty goal, with Binance noting the role played by the new SEC Chair.

“We’re deeply grateful to Chairman Paul Atkins and the Trump administration for recognizing that innovation can’t thrive under regulation by enforcement.”

Since the start of the year, the securities watchdog has dismissed several high-profile cases against cryptocurrency service providers. Coinbase, Kraken, Gemini, and Robinhood have seen their cases against the SEC dismissed. However, the Commission is racing to effectively end the Ripple lawsuit, despite a wave of setbacks from the courts.

Binance founder Changpeng Zhao aka CZ is seeking a pardon request from US president, this looks to be the natural next big milestone for the founder. There are rumors of Trump families interest in acquiring a stake in Binance as well. Earlier, he confirmed he has requested the pardon for his guilty plea in 2023.