Overview

• The SEC and Binance filed a joint stipulation on May 29 in the U.S. District Court for the District of Columbia to dismiss the 2023 lawsuit against Binance and founder Changpeng Zhao.
• Dismissal with prejudice prevents the SEC from refiling claims related to alleged unregistered securities offerings, customer fund commingling and inflated trading volumes.
• The SEC characterized the move as a discretionary policy decision, emphasizing it does not signal a broader retreat from crypto enforcement.
• This action follows the February dismissal of the SEC’s enforcement case against Coinbase and reflects the Trump administration’s pro-crypto orientation.
• Chair Paul Atkins has signaled a shift toward establishing explicit regulatory frameworks for crypto asset issuance, trading and custody rather than relying on enforcement actions.