The U.S. Securities and Exchange Commission (SEC) officially submitted a "Joint Motion to Dismiss and Release Agreement" to the U.S. District Court for the District of Columbia on May 29, 2025, withdrawing 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 shift in the regulatory policy for the U.S. crypto industry.

According to court documents, the SEC deemed it an "appropriate decision" to dismiss the case based on "policy considerations and discretion" and explicitly stated that this dismissal is final, with no further lawsuits permitted on the same matter in the future. A spokesperson for Binance remarked that this milestone moment underscores the SEC's recognition of the importance of innovation under enforcement-based regulation.

Since June 2023, the SEC had accused Binance and Zhao of multiple violations, including operating an unregistered securities exchange and misleading investors. These allegations led to significant market turmoil, with Binance's token (BNB) falling nearly 30% within a week of the announcement.

Looking ahead, the key will be how the SEC advances its new regulatory framework and coordinates with Congress and the industry, which will be crucial for determining whether the U.S. can regain its leadership in global blockchain innovation.