The US Securities and Exchange Commission (SEC) asked a federal judge on May 29 to dismiss its civil complaint against Binance and its founder, Changpeng ‘CZ’ Zhao, according to a four-page filing in the District Court docket.
Judge Amy Berman Jackson placed the case on a 60-day pause in February after both sides told the court that a new SEC crypto task force led by Commissioner Hester Peirce might “impact and facilitate” the litigation’s resolution.
The decision suspended the stay on discovery deadlines while the task force reviewed whether existing securities rules applied to digital-asset venues.
That review unfolded as Binance continued cooperating with an earlier consent order that required greater transparency into custodial controls and US customer asset segregation.
Binance called the decision a “huge win for crypto” in a statement via X, adding:
“The SEC’s case against us is dismissed. Thank you to Chairman Atkins & the Trump team for pushing back against regulation by enforcement. U.S. innovation is back on track – and it’s just the beginning.”
SEC files dismissal on legal battle with Binance
The filing states that the Commission “hereby dismisses” all causes of action against each defendant.
The notice does not include a monetary settlement, and the document does not specify whether dismissal is with or without prejudice.
Because the defendants have not filed counterclaims, the agency may drop the suit unilaterally under Federal Rule 41(a)(1)(A)(i). Once the clerk processes the notice, Judge Jackson’s signature is expected to terminate the matter.
While the SEC closes this case, Binance.US remains subject to the consent decree, which mandates quarterly compliance reports and third-party audits of custodial wallets. Any future enforcement would require a new complaint to be filed.
The court is expected to close the docket when it receives the notice of dismissal, formally concluding the two-year-long legal battle between Securities and Exchange Commission v. Binance Holdings Ltd., BAM Trading Services Inc., and Changpeng Zhao.
Complaint targeted exchange structure
The SEC filed the original action in June 2023. Investigators asserted that Binance and Binance.US functioned as unregistered securities exchanges, broker-dealers, and clearing agencies.
The complaint alleged the platform inflated trading volumes through wash trades, diverted customer assets to market-making firms controlled by Zhao, and misled investors about surveillance systems designed to deter manipulation.
The agency sought injunctive relief, disgorgement of profits, and civil penalties.
Binance denied wrongdoing, arguing that its digital asset listings did not constitute securities under the Howey test and that global operations fell outside the SEC’s jurisdiction.
Parallel criminal investigations by the US Department of Justice concluded in November 2024 with Binance pleading guilty to Bank Secrecy Act violations and agreeing to a $4.3 billion settlement.
Furthermore, Zhao was sentenced to four months in prison, which he served and completed in September 2024.
