The US Securities and Exchange Commission (SEC) has voluntarily dismissed its lawsuit against Binance, the world’s largest cryptocurrency exchange on Thursday, May 29.
This decision was revealed through a court filing in Washington, D.C., and marks a significant moment in terms of regulation for both the exchange and the broader cryptocurrency industry in the US.
SEC Ends Legal Battle With Binance
The dismissal follows a joint stipulation signed by legal representatives for the SEC, Binance, and the exchange’s founder, Changpeng Zhao (CZ) Originally, the SEC had accused Binance of various violations, including artificially inflating trading volumes and diverting customer funds.
Additionally, the regulatory body claimed that Binance failed to restrict US customers from accessing its platform and misled investors regarding its market surveillance capabilities.
The SEC’s lawsuit also alleged that the exchange “unlawfully” facilitated the trading of several tokens that previous leadership at the agency had classified as unregistered securities.
New Administration’s Influence
These accusations contributed to heightened scrutiny of Binance during the agency and the White House’s previous administration under Gary Gensler and former President Joe Biden respectively, and raised concerns about regulatory compliance within the cryptocurrency sector.
The decision to dismiss the lawsuit comes amid ongoing discussions about the regulatory landscape for digital assets in the United States with President Trump contributing to notable changes in both legislation and key positions in the regulatory agencies.
This development has been met with notable optimism, as it signals a significant shift in the US Securities and Exchange Commission’s approach to regulating cryptocurrency exchanges in the country under its new chair Paul Atkins.
Despite the news, Binance Coin (BNB), the exchange’s native token, still records losses of 1.4% in the 24-hour time frame, trading at $675 per token.
Featured image from DALL-E, chart from TradingView.com
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