SEC Dismisses Lawsuit Against Binance

In a recent decision, the US Securities and Exchange Commission (SEC) dismissed its enforcement action against Binance, its subsidiaries, and former CEO Changpeng Zhao. The announcement was made on May 29, 2025.

The dismissal marks a significant moment for Binance, indicating that although the SEC has dropped the case, Binance continues to be under regulatory scrutiny.

Binance Holdings Ltd. and its US affiliates, BAM Trading Services and BAM Management US Holdings, along with Changpeng Zhao face the dismissal of their SEC lawsuit. Statements reveal the case concluded without financial penalties, but oversight persists.

The enforcement action’s conclusion affects Binance’s market position, potentially stabilizing its operations while market volatility may continue concerning Binance Coin (BNB) and related assets. Compliance with the consent decree ensures continued regulatory oversight.

Market participants observe that no details were provided on whether the case is dismissed with or without prejudice, leaving room for future reconsideration by authorities. Binance.US must adhere to rigorous compliance audits quarterly.

Proceedings’ historical context shows other crypto enterprises resolved SEC actions differently, often coupled with fines or operational changes. Binance, having settled a separate DOJ case with significant financial penalties, sets an unusual precedent.

Regulatory encounters for Binance highlight the ongoing challenge for cryptocurrency platforms as they navigate complex legal landscapes. As a result, Binance’s compliance obligations and market perceptions remain forefront concerns for industry observers.