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The SEC has dismissed its lawsuit against Binance, marking a major shift in the U.S. approach to crypto. The dismissal marks a symbolic end to one of the most aggressive crypto crackdowns in U.S. history.
In a newly released statement, Binance expressed relief and optimism, stating that the SEC case dismissal is a win for cryptocurrency, the United States and the world.
"The move signals a global green light for responsible crypto innovation, boosting confidence from the U.S. to the EU and beyond," Binance stated. It further added that the legal decision is a signal to the world that "the United States is serious about innovation again," and this message matters to entrepreneurs in Silicon Valley and Austin and everyday users everywhere.
Binance stated that the SEC decision benefits everyone, including U.S. consumers and the economy, innovators working on the future of finance and global users who will benefit from a more legitimized and better-understood digital asset space, with the move having far-reaching consequences beyond the courtroom.
Era of clarity arrives
The SEC formally dropped its lawsuit against Binance and founder Changpeng Zhao, bringing an end to one of the agency's last remaining crypto enforcement actions. The SEC filed a lawsuit against Binance and Zhao in June 2023, alleging that the exchange artificially inflated trading volumes, diverted customer funds and misled investors about its surveillance controls.
The SEC said dismissing the enforcement case was appropriate "in the exercise of its discretion and as a policy matter" but did not reflect its view on other cryptocurrency litigation. The matter was dismissed with prejudice, which means the SEC cannot pursue it again.
Binance noted that with the case dismissal, a signal has been sent: The era of unchecked enforcement may finally be giving way to one of clarity. In light of the dismissal, Binance stated that it doesn’t mean its work is done, but the future of crypto just got brighter in the U.S. and everywhere else that’s been watching.
Vladislav Sopov
U.Today Editorial Team