The cryptocurrency industry has secured another major victory under the Trump administration as the Securities and Exchange Commission formally dismissed its high-profile lawsuit against Binance, the world's largest crypto exchange. This development marks the end of a contentious two-year legal battle that began during the Biden era and represents one of the final outstanding enforcement actions against major crypto companies.
Joint Motion Ends Two-Year Legal Battle
In a joint filing submitted to a New York federal judge on Thursday, both Binance and the SEC requested dismissal of the case with prejudice, meaning the regulator cannot pursue these charges again in the future. The dismissal follows a 60-day pause that both parties requested in February to explore potential resolution options. Binance expressed gratitude to current SEC Chairman Paul Atkins and the Trump administration, stating that innovation can't thrive under regulation by enforcement and calling the dismissal a landmark moment.
Timeline of Events:
- Late 2022: FTX exchange collapse triggers regulatory crackdown
- 2023: SEC files 13 charges against Binance under Gary Gensler
- 2023: Binance settles DOJ case, Zhao serves 4-month prison sentence
- January 2025: Trump administration takes office with pro-crypto stance
- February 2025: SEC and Binance request 60-day pause in legal proceedings
- Thursday: Joint motion filed to dismiss case with prejudice
Origins of the Enforcement Action
The lawsuit originated in 2023 when the SEC, under former Chairman Gary Gensler during the Biden administration, filed 13 charges against Binance. The agency alleged that the exchange violated U.S. securities laws through what Gensler described as an extensive web of deception. Specific accusations included allowing U.S. traders to access the offshore exchange, mishandling customer funds, and offering unregistered securities without proper regulatory oversight. The enforcement action was part of a broader crackdown on crypto companies following the collapse of FTX exchange in late 2022.
SEC Charges Against Binance (2023):
- Operating illegal exchange in the US
- Allowing US traders access to offshore exchange
- Mishandling customer funds
- Offering unregistered securities
- Defrauding investors
- Violating US securities laws through "extensive web of deception"
Separate Criminal Case Already Resolved
While the SEC case has now been dismissed, Binance had previously settled a separate criminal case with the Department of Justice in 2023. That resolution required the company to pay USD 4.3 billion in fines, while founder Changpeng Zhao stepped down from his leadership role, paid USD 50 million in personal fines, and served a four-month prison sentence after pleading guilty to violating anti-money laundering laws. The SEC dismissal represents the final major legal hurdle for the exchange in the United States.
Key Financial Figures:
- Binance DOJ settlement: USD 4.3 billion in fines (2023)
- Changpeng Zhao personal fines: USD 50 million
- Crypto industry political spending: Over USD 130 million for pro-crypto candidates
- Trump family crypto business investment: USD 2 billion from Abu Dhabi firm into Binance (May 2024)
Broader Crypto Industry Transformation
The Binance case dismissal reflects a dramatic shift in the regulatory landscape under the Trump administration. The crypto industry mounted an unprecedented political influence campaign, spending over USD 130 million to elect pro-crypto candidates and successfully courting Trump with substantial campaign donations. Since taking office in January, the Trump administration has implemented sweeping pro-crypto policies, including executive orders to establish a strategic Bitcoin reserve, pardons for prominent crypto figures, and the elimination of the Department of Justice's specialized crypto enforcement unit.
Wave of Dropped Cases
The SEC has systematically dropped the majority of its consequential crypto lawsuits since the administration change, with Binance representing one of the final outstanding cases. The regulator has already dismissed investigations into major exchanges including Coinbase, Gemini, Kraken, and Robinhood. This regulatory retreat marks a stark contrast to the previous administration's approach, where Gensler argued that the vast majority of cryptocurrencies constituted unregulated securities in violation of U.S. financial law.
Industry Implications and Future Outlook
The dismissal signals a new era of regulatory clarity and acceptance for the cryptocurrency sector in the United States. The Trump administration's embrace of digital assets extends beyond enforcement policy changes to active promotion of the industry, including hosting private dinners for crypto supporters and launching the president's own meme coin. With major legal uncertainties now resolved, crypto companies can focus on innovation and expansion rather than costly compliance battles, potentially accelerating mainstream adoption of digital assets.