SEC DROPPED A LAWSUIT AGAINST BINANCE AND CZ
The U.S. Securities and Exchange Commission (SEC) has officially dismissed its civil lawsuit against Binance and its founder, Changpeng Zhao (CZ), marking a significant shift in U.S. cryptocurrency regulation. The dismissal, filed with prejudice, means the case cannot be reopened in the future .
Background and Legal Context
The SEC's lawsuit, initiated in June 2023, accused Binance of operating unregistered securities exchanges, misleading investors, and commingling customer funds. This civil case followed a separate criminal proceeding in which Binance agreed to pay a $4.3 billion fine, and CZ received a four-month prison sentence after pleading guilty to violating anti-money laundering laws .
Regulatory Shift Under New Administration
The dismissal aligns with a broader regulatory shift under the Trump administration and SEC Chairman Paul Atkins, who have adopted a more industry-friendly approach to cryptocurrency. The SEC has also dropped or settled cases against other major crypto firms, including Coinbase, Kraken, and Consensys .
Implications for the Crypto Industry
This development is being hailed by the crypto industry as a victory for innovation and a move away from "regulation by enforcement." Binance.US described the dismissal as a "huge win for crypto," emphasizing their commitment to operating with integrity and transparency .
The SEC's decision may boost investor confidence and encourage further growth in the cryptocurrency market. However, the agency clarified that this dismissal does not necessarily reflect its position on other ongoing or future crypto-related litigations .