The Securities and Exchange Commission (SEC) has officially dismissed its lawsuit against Binance and its former CEO Changpeng “CZ” Zhao, marking a major milestone in the rollback of federal crypto enforcement. The move ends one of the most high-profile cases from the agency’s historic crackdown on digital assets.
In a joint filing Thursday, both the SEC and Binance requested a dismissal “with prejudice” — preventing the regulator from refiling the same charges. The original 2023 complaint had accused Binance of illegally serving US users, commingling customer funds, and enabling unregistered securities trading.
Regulatory Shift Under Trump
The dismissal reflects a dramatic pivot in regulatory tone. Since President Trump’s return to office, his administration has moved quickly to reframe Washington as a crypto-friendly environment:
- The Justice Department shut down its crypto enforcement division.
- The Commodity Futures Trading Commission (CFTC) is now headed by a crypto-aligned venture capitalist.
- And the SEC itself is retreating from enforcement, favoring new rulemaking and engagement instead.
Commissioner Hester Peirce commented, “We didn’t have a clear set of rules. What we’re trying to do now is take a step back, write those rules, and then enforce them.” Still, she warned: “It’s not open season for scammers.”
Binance Eyes Expansion with Trump-Linked Crypto Projects
Binance, still the world’s largest crypto exchange, is forging deeper ties with World Liberty Financial, a Trump-affiliated crypto venture aspiring to become a digital bank. The platform recently secured a $2 billion investment from Emirati fund MGX, paid entirely in USD1, a new stablecoin launched by the Trump family’s World Liberty team.
Binance’s new partnerships go beyond the US:
- The company is expanding rapidly into Pakistan, where Zhao now serves as an adviser to the state-backed Crypto Council.
- World Liberty’s co-founder Zack Witkoff, son of US Middle East envoy Steve Witkoff, recently signed a digital asset deal with the Pakistani government.
SEC’s Retreat Is Boosting the Trump Crypto Universe
This legal victory comes as several Trump-affiliated coins, including the meme-fueled $TRUMP token, gain traction. The coin now boasts a market cap of $2.4 billion, with 80% reportedly held by the Trump Organization and its affiliates.
In another sign of the regulatory shift, the SEC has:
- Scrapped Staff Accounting Bulletin 121, easing crypto rules for banks.
- Loosened guidance around meme coins, suggesting many may not qualify as securities.
The SEC’s retreat from its Binance lawsuit is more than just legal housekeeping — it’s a clear signal that the Trump administration is actively reshaping the future of crypto in America. With enforcement giving way to engagement and Trump-linked projects surging ahead, the industry is entering a new, politically charged chapter.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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