Michaela
The U.S. Securities and Exchange Commission (SEC) has filed a joint motion with crypto exchange Binance to dismiss their nearly two-year lawsuit, marking the agency’s latest retreat from aggressive crypto enforcement.
On May 29, the Commission, Binance, and its co-founder Changpeng Zhao jointly filed a motion in a Washington, DC federal court requesting the dismissal of the SEC’s complaint, which was originally filed in June 2023.
The joint motion noted that the SEC’s Crypto Task Force could influence and help bring about a resolution to the lawsuit. The regulator stated that dismissing the case was appropriate “in the exercise of its discretion and as a policy matter.” The motion further stipulated that the lawsuit be dismissed with prejudice, thereby preventing any future refiling of the case.
In both February and April, the SEC and the crypto exchange temporarily halted proceedings, suggesting that the agency’s Crypto Task Force might ultimately lead to the case being dropped.
The SEC filed a lawsuit in June 2023 against Binance, its U.S. affiliate BAM Trading, and co-founder Changpeng Zhao, accusing the crypto exchange of breaching securities laws, misusing customer assets, and providing misleading information to investors.
SEC Shift Evident in Ripple Deal Ahead of Binance Case Exit
The SEC’s decision to seek dismissal of its case against Binance marks one of several recent instances in which the agency has opted to scale back or withdraw legal actions against major players in the cryptocurrency sector.
In early May, the SEC reached a settlement agreement with Ripple Labs, along with CEO Brad Garlinghouse and co-founder Christian A. Larsen. As part of the agreement, both parties plan to submit a joint request to the district court, seeking a preliminary ruling that may lead to the removal of the existing injunction against Ripple.
The settlement also outlines the handling of the $125,035,150 civil penalty currently held in escrow. Under the agreement, $50 million will be paid to the SEC to resolve the penalty in full, while the remaining funds are set to be returned to Ripple.
Should the district court indicate support for lifting the injunction and releasing the escrowed funds in line with the settlement terms, both the SEC and Ripple intend to request a limited remand to allow the lower court to issue the necessary relief.
If approved, the parties plan to withdraw their pending appeals currently under review by the U.S. Court of Appeals for the Second Circuit.
This ongoing trend from the Commission suggests a possible shift in enforcement strategy as the SEC reevaluates its approach to regulating digital asset markets amid evolving legal interpretations and industry developments.
Read More
- SEC Chair Atkins Vows 2025 Regulatory Framework for Crypto Markets
- Unicoin Execs Charged by SEC Over $100M Crypto Fraud Scheme
- SEC Drops Helium Lawsuit, Crypto Token Violations Cleared
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
