SEC Closes Case Against Binance as U.S. Shifts Crypto Stance Under Trump-Aligned Policy Overhaul
The U.S. Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Binance and its founder, Changpeng Zhao, marking the end of a major chapter in the federal government’s crackdown on the crypto sector. The dismissal was filed jointly on Thursday, May 30, in the U.S. District Court for the District of Columbia.
Originally launched in June 2023, the SEC’s case accused Binance of multiple violations, including illegally catering to U.S. customers, manipulating trading volumes, and commingling user funds. The agency also claimed the exchange facilitated trading of unregistered securities — a legal argument previously aimed at Coinbase, Kraken, and other platforms.
But in a stark reversal, the court granted the SEC’s motion to dismiss the case with prejudice — meaning the agency cannot refile the same charges.
Policy Reset: From Crackdown to Collaboration
The decision signals a broader transformation within Washington’s approach to crypto regulation, with the Biden-era enforcement model now being steadily dismantled. Under the Trump-aligned leadership reshuffle, the Department of Justice has shuttered its crypto enforcement team, and the Commodity Futures Trading Commission (CFTC) is poised to be led by a crypto-friendly venture capitalist.
SEC Commissioner Hester Peirce, speaking during a CNBC panel in Las Vegas, framed the case’s dismissal as a move toward clarity rather than laxity. “We didn’t have a clear set of rules,” Peirce said. “Now we’re stepping back to write those rules before enforcing them.” She emphasized, however, that bad actors will still face consequences: “This is not a license to defraud people in crypto.”
Binance Expands as U.S. Regulatory Pressure Lifts
Binance, the world’s largest crypto exchange by volume, is already pivoting to expansion. It recently secured a $2 billion investment from Emirati sovereign wealth fund MGX, all in USD1 — a newly issued stablecoin launched by World Liberty Financial (WLF). Binance’s partnership with WLF, a company that directs 75% of its profits to Trump-affiliated entities, signals deeper political and financial alignment with the former president’s circle.
WLF co-founder Zack Witkoff — son of U.S. Middle East envoy Steve Witkoff — has also struck a development deal with Pakistan, where Binance founder Zhao was appointed adviser to the country’s new Crypto Council. The council is tasked with shaping Pakistan’s national crypto strategy.
SEC Rollbacks Continue as Trump Coin Surges
The regulatory retreat is extending beyond enforcement cases. In January 2025, the SEC revoked Staff Accounting Bulletin 121, a controversial policy that had previously discouraged banks from holding crypto assets. Commissioner Peirce celebrated the move on X (formerly Twitter), writing, “Bye, bye SAB 121! It’s not been fun.”
In February, the SEC clarified that it does not consider most meme coins to be securities — a shift that benefits projects tied to the Trump family, such as the $TRUMP token. That coin, launched shortly before Trump’s inauguration, now commands a $2.4 billion market cap, with 80% of its supply reportedly controlled by Trump-linked entities.
A Turning Point for U.S. Crypto Policy
With the SEC’s Binance case now closed and other regulatory firewalls coming down, the U.S. appears to be embracing a more permissive and politically intertwined crypto landscape. What was once an adversarial regulatory environment is rapidly evolving into one of engagement, partnerships, and potentially, favoritism — with Binance and Trump-linked ventures at the center of the shift.