The SEC officially ended its lawsuit against Binance and its founder Changpeng Zhao, closing a major crypto enforcement case. On Thursday, both SEC and Binance lawyers filed a joint motion to dismiss the case in a Washington, D.C. federal court.
This lawsuit, initially filed in June 2023, was among the last major actions targeting the crypto industry. Namely, the SEC accused Binance of breaking rules by serving U.S. users, inflating trading volumes, and mixing customer funds. It also claimed Binance enabled trading of unregistered securities, a stance previously taken against Coinbase, Kraken, and others.
The US Government’s Shift in Cryptocurrency
The dismissal ends one of the toughest US crypto crackdowns, signaling a shift under the Trump administration. Currently, the administration is now actively positioning itself as pro-crypto, following the Justice Department’s closure of its crypto unit.
Additionally, the CFTC will soon be led by a crypto-friendly venture capitalist, reinforcing the administration’s support. The SEC remained the last major regulator pursuing Binance after its $4.3 billion settlement with the U.S. government last year.
As part of that deal, Zhao pleaded guilty, stepped down as CEO, avoided prison, and kept much of his wealth. The court granted the SEC’s motion to dismiss with prejudice, blocking the agency from refiling the same charges.
The SEC confirmed the lawsuit was dismissed with prejudice, preventing it from bringing the same claims again. This decision was made at its discretion and as a policy matter, not as a legal precedent. Therefore, it does not affect how the SEC may handle future crypto enforcement cases.
What Does the Binance Lawsuit Dismissal Mean for Crypto Casinos?
The U.S. SEC’s dismissal of its lawsuit against Binance could positively impact the crypto casino and online gambling sectors. This decision signals a potential softening of regulatory pressure on crypto-related businesses operating within or targeting U.S. users.
As a result, US-based crypto casinos may gain more confidence in launching or expanding services using digital assets. Moreover, investors and operators might see the move as a green light for innovation in crypto-based gambling platforms.
With fewer legal uncertainties, these platforms can improve user experience, integrate more cryptocurrencies, and boost marketing efforts. The dismissal also reduces fear of abrupt shutdowns or penalties, encouraging more participation and investment in crypto gaming.
In addition, online gambling platforms using crypto can benefit from improved transaction speed, transparency, and global accessibility. Overall, the SEC’s decision may strengthen the legitimacy and growth of crypto casinos and blockchain-powered betting platforms in the US.