SEC Officially Dismisses Binance and CZ Case With Prejudice — A Major Turning Point in U.S. Crypto Regulatory Policy
The U.S. Securities and Exchange Commission (SEC) announced the end of its year-long civil lawsuit against Binance Holdings Ltd., BAM Trading Services Inc., BAM Management US Holdings Inc., and former CEO Changpeng Zhao (CZ). The move was made “with prejudice,” meaning the SEC cannot refile similar lawsuits in the future — a decisive legal victory for Binance and CZ.
SEC Backs Off With New Policy Direction
According to a joint filing in the U.S. District Court for the District of Columbia, the SEC said:
“The Commission, in an exercise of its discretion and as a matter of policy, has determined that it is appropriate to dismiss this action.”
The SEC also clarified that the decision to end the case should not be construed as a legal precedent for other enforcement cases. This is the first time the SEC has publicly acknowledged the limits of its efforts to impose regulatory oversight on one of the world’s largest cryptocurrency exchanges.
Binance Celebrates Victory – A New Regulatory Era?
Soon after the announcement, current Binance CEO Richard Teng posted his reaction on the X platform (Twitter):
“The tide has turned. The SEC’s case against us has been dismissed – justice, at last. Kudos to Chairman Paul Atkins and the Trump administration for standing up to regulatory overreach. The US is back – ready to lead the world in blockchain innovation.”
Teng’s statement reflects a marked shift in policy at the SEC under new Chairman Paul Atkins, who replaced Gary Gensler after a series of controversies over his “regulation by enforcement” approach.
From confrontation to cooperation: SEC shifts strategy
According to insiders, the SEC has established a new Crypto Asset Task Force, with a focus on dialogue and collaborative policymaking, rather than continuing the heavy-handed enforcement campaign it pursued under Gensler.
Roundtables between the SEC and blockchain industry representatives are now underway, opening up the possibility of a clear regulatory framework that supports innovation rather than creating lingering regulatory concerns.
Conclusion: A victory beyond the legal framework
The decision to dismiss the case with prejudice is not only a legal victory for Binance and CZ, but also a symbolic turning point in the relationship between the US government and the crypto industry. As policy gradually shifts from confrontation to cooperation, observers expect a more friendly regulatory environment for blockchain technology innovation in the US — which has been seen as lagging behind Europe and Asia in the race to establish a Web3 legal framework.