SEC Abandons Legal Fight Against Binance Amid Shifting Crypto Enforcement

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In a significant reversal, the SEC has agreed to drop its high-profile lawsuit against Binance, raising questions about the agency’s approach to crypto regulation.

The regulator, alongside Binance and former CEO Changpeng Zhao, filed a joint motion on May 29 seeking dismissal of the June 2023 case. The document suggested that the SEC’s Crypto Task Force played a role in the decision and framed the move as a policy-based choice.

Notably, the dismissal would be with prejudice, barring future litigation on the same claims. The case had already been paused twice in 2024, hinting at an impending resolution.

The SEC’s original lawsuit accused Binance of securities law violations, mismanagement of user assets, and deceptive practices. This comes after Binance’s massive $4.3 billion DOJ settlement last year, which also led to Zhao’s resignation and a four-month prison sentence for money laundering.