SEC Drops Lawsuit in Trump Era Shakeup

On May 29, 2025, the U.S. Securities and Exchange Commission (SEC) stunned the crypto world by officially dropping its high-profile lawsuit against Binance and its founder, Changpeng Zhao (CZ). 

This sudden reversal marks not just the end of a two-year legal battle, but a dramatic shift in the regulatory climate for digital assets under President Trump’s administration.

The case, originally filed in June 2023, had accused Binance, the world’s largest crypto exchange, of illegally serving U.S. users, inflating trading volumes, and misusing customer funds. For nearly two years, the lawsuit hung over the industry, fueling uncertainty and dampening sentiment. But in a joint court filing, the SEC and Binance agreed to dismiss the case “with prejudice,” meaning the regulator cannot pursue the same charges again.

Huge win for crypto today. The SEC’s case against us is dismissed.
Thank you to Chairman Atkins & the Trump team for pushing back against regulation by enforcement. U.S. innovation is back on track – and it’s just the beginning.

— Binance (@binance) May 29, 2025

Binance wasted no time declaring victory. In a post on X (formerly Twitter), the company called the outcome a “huge win for crypto,” and specifically thanked SEC Chairman Paul Atkins and the Trump administration for “pushing back against regulation by enforcement.”

“U.S. innovation is back on track — and it’s just the beginning,” Binance wrote.

The SEC’s move is widely seen as a signature moment in a broader regulatory rollback. Since President Trump’s return to the White House, the agency has dropped more than a dozen cases against crypto firms, including a high-profile lawsuit against Coinbase earlier this year. SEC Chairman Atkins has emphasized a new approach: “clear rules of the road” for digital assets, rather than aggressive enforcement.

The timing is notable. Just days before the dismissal, Binance began listing USD1 — a new stablecoin developed by World Liberty Financial, a company closely tied to the Trump family. World Liberty Financial is now facilitating a major deal between Binance and the Abu Dhabi-backed MGX fund, further intertwining the exchange with U.S. political and financial interests.

Despite the positive news, the price of BNB has so far remained unaffected.

For the crypto industry, the SEC’s retreat is being celebrated as a turning point. Binance.US released a statement:

“This outcome confirms what we have always known: that we did not violate U.S. securities laws… A new chapter now begins for Binance.US.”

On social media, the mood was euphoric:

“Regulation by enforcement is over. The U.S. is open for crypto business again!”

Yet, not everyone is convinced the fight is over. Some experts warn that while the SEC’s retreat brings short-term relief, it leaves open questions about investor protection and the need for a comprehensive regulatory framework. 

As Commissioner Hester Peirce noted at the Bitcoin 2025 conference, “Crypto investors should not expect a bailout or government protection if they invest in speculative digital assets”.

Looking ahead, the SEC’s policy pivot, combined with the Trump administration’s pro-crypto stance, could usher in a new era of innovation and growth for the U.S. digital asset sector. As the dust settles, the industry is left with a sense of renewed optimism, but also with a watchful eye on how regulators will balance openness with oversight. 

For now, the crypto world is celebrating a landmark victory, hopeful that this new chapter will bring greater clarity, opportunity, and legitimacy to the future of digital finance.