The U.S. Securities and Exchange Commission (SEC) formally filed a "Joint Stipulation of Dismissal and Release" with the U.S. District Court for the District of Columbia on May 29, 2025, announcing the withdrawal of its civil lawsuit against Binance, the world's largest cryptocurrency exchange, and its founder, Zhao Changpeng. This decision ends nearly two years of legal battles that began in June 2023 and is seen as a significant signal of a shift in the regulatory policy towards the U.S. crypto industry.

According to court documents, the SEC concluded that withdrawing the case was an "appropriate decision" based on "policy considerations and discretion," and it specified that this dismissal is final, prohibiting any future litigation on the same matter. A spokesperson for Binance stated, "The SEC's withdrawal of the lawsuit is a landmark moment. We sincerely thank SEC Chair Paul Atkins and the Trump administration for recognizing that innovation cannot thrive under an enforcement-heavy approach to regulation. The U.S. is back—leading the way in the future of blockchain."

This withdrawal is seen as a major turning point in the regulatory battle over cryptocurrencies. The SEC had previously levied multiple charges against Binance and Zhao Changpeng, including operating an unregistered securities trading platform, misappropriating funds, manipulating trading data, and misleading investors. Following the announcement of these charges, Binance’s native token BNB plummeted by nearly 30% within a week, shaking investor confidence and contributing to market instability.

Despite the withdrawal symbolizing a shift in the SEC's stance, market observers caution that this is merely a case-specific dismissal and does not indicate a complete abandonment of regulatory oversight over the crypto industry by the SEC. Key concerns for future regulations will continue to be transparency of funding flows, investor protection, and compliance.