SEC Officially Dismisses Case Against Binance and CZ

The SEC has officially closed its case against Binance and co-founder Changpeng Zhao, a decision that could influence investor perception of digital asset regulation in the U.S. The lawsuit, filed in June 2023, included allegations of customer fund mismanagement, artificial trading volume inflation, and unauthorized services provided to U.S. investors.

The SEC had classified tokens such as Solana (SOL) and Cardano (ADA) as securities, placing Binance in potential violation of securities laws. Despite expanding the charges in October 2024, the regulator filed a joint motion for dismissal “with prejudice” on May 29, 2025, ruling out the possibility of reopening the case.

While the decision sets no legal precedent, it signals a potential shift in the SEC’s strategy toward proactive policymaking and fewer enforcement actions. For the market, this withdrawal may be seen as a positive signal, reducing legal uncertainty and systemic risk for trading platforms. Institutional investors might interpret the move as a step toward a more stable regulatory framework for digital assets in the U.S.