Best crypto insights delivered straight to your inbox.
- The SEC and Binance have filed a joint stipulation to dismiss the lawsuit that has been ongoing for two years, specifically regarding a civil enforcement action initiated in June 2023.
- The win for Binance reflects a broader trend of the SEC resolving crypto-related cases as it works toward a regulatory framework for the industry.
- The establishment of the SEC’s Crypto Task Force may have influenced the resolution of this litigation, as noted in the filings from May 29.
According to Eleanor Terrett, the SEC and Binance have filed a joint stipulation seeking a dismissal in the agency’s ongoing litigation against the exchange.
Terrett shared the news via her X page, attaching an image from the legal filing, which identified the SEC as the plaintiff and Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings Inc., and Changpeng Zhao as the defendants.
SEC, Binance credit Crypto Task Force for resolution
The SEC initiated this civil enforcement action against Binance on June 5, 2023, and it filed an amended complaint on October 16, 2024 (Docket No. 282).
The joint stipulation seeks to allow both parties to dismiss the ongoing lawsuit.
“Whereas, in light of the foregoing, and in the exercise of its discretion and as a policy matter, the Commission believes the dismissal of this Litigation is appropriate,” the May 29 filing in the District Court for the District of Columbia read.
Both parties hinted at the possibility of a dismissal in February when the SEC and Binance asked the judge to stay the case. Then again, in April, when the same request was filed.
The parties mentioned how the establishment of the SEC’s Crypto Task Force “might impact and facilitate the potential resolution of this litigation,” in the court documents.
The SEC’s Acting Chairman, Mark T. Uyeda introduced the task force on January 21, 2025, to present a regulatory framework for crypto assets in the lead up to providing regulatory clarity for the cryptocurrency space.
Paul Atkins’ SEC sets a precedent
The SEC’s willingness to dismiss Binance’s lawsuit follows a trend that has seen the agency end its litigation against other crypto companies like Coinbase, Consensus and Kraken, which were settled earlier this year. It has also ended investigations into Circle, Immutable and several others.
Sentiments on X are bullish about the SEC and Binance finally burying the hatchet, but a number of users in the reply section of Eleanor Terrett’s X post have drawn comparisons to the protracted settlement of the SEC’s case against Ripple Labs.
The Ripple case is a similar high-profile case. It began in December 2020 and has seen multiple developments, including a final judgment on August 7, 2024, imposing a $125 million civil penalty on Ripple.
Still, the SEC appears committed to ending aggressive enforcement actions initiated against crypto firms during Gary Gensler’s tenure with the financial watchdog.
Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience. She graduated from Arcadia university where she studied business administration. She now works with Cryptopolitan, where she contributes to reporting on the latest developments in the cryptocurrency, gaming, and AI industries.
CRASH COURSE
- Which cryptocurrencies can make you money
- How to boost your security with a wallet (and which ones are actually worth using)
- Little-known investment strategies that the pros use
- How to get started investing in crypto (which exchanges to use, the best crypto to buy etc)