Binance Celebrates SEC's Dismissal of the Lawsuit as a 'Major Victory for Cryptocurrency'

Binance called the SEC's dismissal of the lawsuit against this exchange a "major victory for cryptocurrency, the U.S., and the world." Binance is celebrating the conclusion of a major lawsuit against it. On Friday, May 30, the U.S. Securities and Exchange Commission officially dismissed the lawsuit against the exchange and its founder, Changpeng Zhao. In an official statement, Binance stated that this decision signals that the U.S. is serious about cryptocurrency innovation. "Today is a momentous day for Binance, cryptocurrency, and the United States. With the dismissal of the long-standing lawsuit by the SEC against us, one chapter closes, but a more promising chapter begins. This legal decision is a signal to the world: the United States is serious about innovation," Binance. Binance stated that numerous SEC lawsuits against cryptocurrency companies have created a "chilling effect" on innovation. The lack of clear regulations means that companies have to guess whether their operations are legal or not. "The SEC's decision benefits everyone: consumers and the U.S. economy, innovators working for the future of the financial industry, and global users who will feel the positive spillover effects of a legalized digital asset space and understand it better," Binance. Binance also noted that the layoffs coincided with a shift in political dynamics following Donald Trump's election. Notably, both political parties in the United States currently support cryptocurrency-friendly regulations. The SEC's Allegations Against Binance This decision was made after a joint filing on April 29, in which the SEC, Binance entities, and Zhao requested the judge to dismiss the lawsuit. The lawsuit began in June 2023, alleging that Binance misused customer assets, inflated trading volumes, and operated an unregistered exchange in the United States. The SEC has also accused Binance of listing tokens such as Solana and Cardano, which the agency classifies as securities. However, since the leadership change at the SEC under Trump, the agency has taken a more favorable approach to cryptocurrency.