The U.S. Securities and Exchange Commission (SEC) has dropped its lawsuit against Binance, the leading global cryptocurrency exchange, signaling a shift in regulatory strategy under the Trump administration. The dismissal, filed in a Washington, D.C., federal court, was agreed upon by the SEC, Binance, and its founder Changpeng Zhao.  

The SEC stated that ending the case aligned with its policy discretion but clarified that this decision did not affect its stance on other crypto-related legal actions. The dismissal is "with prejudice," preventing the SEC from reopening the case.  

Binance hailed the move as a "landmark moment," thanking SEC Chairman Paul Atkins and the Trump administration for supporting innovation over aggressive regulation. The SEC declined further comment.  

Originally filed in June 2023, the lawsuit accused Binance of manipulating trading volumes, mishandling customer funds, and failing to properly monitor transactions. It also alleged that Binance illegally traded certain tokens the Biden-era SEC considered unregistered securities.  

This case was unrelated to Binance’s 2023 guilty plea and $4.32 billion fine for violating anti-money laundering laws. Zhao served four months in prison for similar charges before his release last September.  

The SEC’s recent dismissals, including a similar case against Coinbase, reflect a changing approach to crypto regulation. The industry has resisted applying securities laws to digital assets, arguing many tokens resemble commodities rather than securities.  

SEC Chairman Atkins emphasized the need for clear crypto regulations to foster compliance while deterring misconduct. However, the SEC continues pursuing some cases, such as a May 20 lawsuit against Unicoin over alleged fraudulent fundraising.  

President Trump, during his 2024 campaign, vowed to support the crypto sector, contrasting with the stricter oversight under former SEC Chair Gary Gensler. Since then, the SEC has scaled back several enforcement actions.