SEC ends the lawsuit against Binance: Course on crypto regulation

After almost two years, the US stock exchange supervisory authority SEC ends its legal dispute against the Krypto exchange Binance. The proceedings were officially terminated on May 29, 2025 with a common order to terminate the lawsuit.

The SEC justifies the decision with the work of a new one Crypto Task Force, the regulatory framework for Cryptocurrencies should develop. The lawsuit was rejected with a prejudicity, so it is excluded again.

Lawsuit against Binance ends through joint agreement

In June 2023 handed the SEC lawsuit against Binance Holdings Limited, her US subsidiary Bam Trading Services Inc., Bam Management Us Holdings Inc. and the founder Changpeng Zhao (CZ). The authority accused them of violations of securities laws, mismanagement of customer funds and misleading practices. After submitting an extended application in October 2024, the procedure was initially suspended in February 2025.

The suspension was made because the SEC was a newly founded Crypto Task Force had launched, the work of which could influence the process. The parties submitted several status reports and asked the court to extend the suspension. On May 29, 2025, they finally applied for the complaint of the lawsuit “in the exercise of the discretion and as a political measure”, as stated in the common arrangement.

The youngest Decision Against the background of a change of direction of the SEC under the direction of Mark T. Uyeda and his Crypto Task Force Team. Your plan is to create a clear regulatory framework for digital assets.

Binance itself and CZ had already accepted a sentence of $ 4.3 billion in a separate procedure with the US Ministry of Justice in 2023. At that time Zhao resigned as CEO and saw himself sentenced to four months in prison for money laundering.

The SEC has recently had several procedures against crypto companies such as Coinbase, Kraken and Circle set or settled out of court. This reflects a shift from the US authority from strict enforcement to cooperative regulation.

According to the joint explanation, “The attitude of the lawsuit is an important step and is considered a success for the entire crypto industry.”