SEC Drops Lawsuit Against Binance in Major Win for Crypto Industry

The U.S. Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Binance, marking a significant development for the global cryptocurrency exchange. The case, originally filed in June 2023, accused Binance and its former CEO Changpeng Zhao of violating U.S. securities laws. A joint stipulation for dismissal was recently filed by both parties, following a court decision in February 2025 to pause the proceedings after a joint motion.

Binance.US, the American arm of the exchange, responded positively to the news on social media platform X, stating, “This is a major milestone for our company. With this case behind us, we’re turning our full attention to growth—expanding crypto access, winning back trust, and restoring relationships that were impacted by the SEC.”

Despite the legal victory, Binance Coin (BNB) showed little price movement, increasing by just 0.4% in the hour following the announcement. Analysts suggest the lackluster market reaction indicates the news was already priced in.

The dismissal follows a trend, as the SEC has recently closed similar cases against other major exchanges, including Coinbase and Kraken. These developments may signal a shift in regulatory strategy or a softening of the SEC’s aggressive stance toward crypto firms operating in the U.S.

The resolution of the Binance case is expected to ease some uncertainty in the crypto market, potentially paving the way for increased adoption and innovation. However, the industry continues to call for clearer regulatory guidelines to avoid prolonged legal battles in the future.

With legal headwinds easing, Binance is now focused on rebuilding its brand and expanding crypto adoption globally, signaling a potential rebound in user trust and engagement.