The U.S. Securities and Exchange Commission (SEC) said on Thursday that it is ending its lawsuit against Binance, the biggest cryptocurrency exchange in the world. This shows the SEC is taking a new approach to crypto under The U.S. President Donald Trump’s leadership.
The SEC explained that it chose to drop the case as a policy decision and not because it had changed its opinion on other crypto lawsuits.
A Binance spokesperson called this a “big moment” and thanked SEC Chairman Paul Atkins and the Trump administration. They said this shows that new ideas in technology need support, not strict rules and punishments.
Why Did the SEC Sue Binance in the First Place?
The SEC took Binance and its founder, Changpeng Zhao, to court in June 2023. They accused the exchange of faking how much trading was happening, using customer money in the wrong way, and not being honest with investors about how it checks for risky or illegal activity.
The SEC also said Binance let people trade certain crypto tokens that, under the U.S. former President Joe Biden’s team, should have been registered as official financial products.
Regulators vs. Exchanges: A Long-Running Battle
This case was different from another one in November 2023, where Binance admitted to breaking U.S. anti-money laundering and sanctions laws. In that case, the company had to pay a $4.32 billion fine because it didn’t have strong enough safety rules in place.
Zhao admitted he broke anti-money laundering laws and was released from prison last September after serving four months.
In February, the SEC dropped a different case against Coinbase, the biggest crypto exchange in the U.S., which had been accused of letting people trade 13 tokens that weren’t properly registered.
The SEC’s job is to protect investors by making sure companies follow the rules. If crypto tokens are seen as securities, companies must register and share more information.
But under the Trump administration, who promised to be a “crypto president”, the SEC has started easing up, dropping or delaying several cases, including against Binance.
This change may help crypto companies grow with fewer limits. But it leaves an important question: can the industry succeed without putting investors at risk?
