SEC removed the case from Binance, a big relief to the crypto industry

A big and positive news has come out for the crypto world. According to the information received from Binance's official X account, America's big regulatory organization SEC (Securities and Exchange Commission) has decided to officially end the long and controversial case going on against the world's largest crypto exchange Binance. This case was going on for about 2 years and now to close it, SEC, Binance and its co-founder CZ (Changpeng Zhao) together filed a joint motion on 29 May 2025.

What was the SEC – Binance Case?

In June 2023, the securities authority filed a case against Binance and its co-founder CZ and its US-based unit BAM Trading. Allegations were made that:Binance had violated US securities laws.It was accused of mishandling users' funds.It was alleged that customers were misled.The U.S. financial authority initiated this case as a major crypto regulatory action, which created an atmosphere of fear among crypto companies.Why did the SEC withdraw the case?

On May 29, 2025, the SEC, Binance and CZ filed a petition in a federal court in Washington DC, stating that:
The new Crypto Task Force of the U.S. financial authority can be helpful in resolving this case. The regulator decided to withdraw the case based on its policy and knowledge.

The case has been said to be removed “With Prejudice”, which means that this case cannot be reopened, which simply means that now the Securities and Exchange Commission cannot take action against Binance again under the same case in the future.

SEC had stopped action earlier as well
This case between SEC and Binance was stopped twice in February and April 2025. At that time, the Crypto Division of the Securities and Exchange Commission had indicated that this case could be closed completely in future.