The U.S. Securities and Exchange Commission (SEC) has formally discontinued its lawsuit against Binance. This decision effectively brings to a close one of the last large-scale enforcement actions brought against the cryptocurrency exchange and its founder, Changpeng Zhao. Then in June 2023, the U.S. government launched a high-profile lawsuit against Binance. It alleged the company was illegally serving U.S. users, washing trading volumes and commingling customer funds. This dismissal marks a symbolic end to one of the most aggressive crackdowns on the crypto industry in U.S. history.
Binance, the world’s largest cryptocurrency exchange, had already been under fire for allegedly running an unregistered exchange in the U.S. Accusations floated around claiming that the firm had participated in reckless practices that put the safety of client assets at risk. Here’s why the recent joint motion to dismiss the case is a hopeful sign that the regulatory tide is turning. It was docketed in the U.S. District Court for the District of Columbia.
As a companion piece to this lawsuit news, today Binance announced a $2 billion investment led by Emirati state fund MGX. Uniquely, this investment will be all in USD1, a new stablecoin recently issued by the World Liberty crew. The agreement with MGX is likely to strengthen Binance’s balance sheet and improve its standing in the eyes of the global market.
Recently, Changpeng Zhao has assumed the position of chief adviser to Pakistan’s newly established Crypto Council. This new appointment serves to further entrench his position at the center of the cryptocurrency ecosystem. This state-sponsored entity also seeks to determine the course of national digital asset policy in Pakistan. It further showcases Zhao’s growing influence over global cryptocurrency debates.
As for Mr. Pindell, the SEC just closed the door on that lawsuit. This decision is made as the Trump administration is increasingly trying to collaborate with the booming cryptocurrency industry. By dropping these charges/all charges, the administration sends a clear signal in the opposite direction. As a result, they are fully leaning into digital asset innovation and regulation.
Richard Teng, the newly appointed Asia CEO of Binance, said that he was optimistic about the company’s future now that legal challenges were resolved. “We remain committed to operating transparently and ensuring that our practices align with regulatory expectations,” he stated.