SEC Officially Closes Binance Case: A New Beginning for US Crypto?
Crypto Industry Shock: SEC Backs Out of Legal Battle with Binance
The US Securities and Exchange ComTmission (SEC) has withdrawn its long-running civil lawsuit against Binance and its founder Changpeng Zhao (CZ), marking a turning point in US crypto regulatory policy. he withdrawal was filed in the US District Court for the District of Columbia on Thursday, ending one of the most high-profile confrontations in the history of the global blockchain industry.
End of a Years-Long Legal Chapter
The SEC's move marks the end of a legal battle that has been going on since 2023, in which Binance faced a massive $4.3 billion fine from the US Department of Justice for violations related to financial regulation and anti-money laundering.
Along with the fine, CZ agreed to resign, plead guilty, and serve a four-month prison sentence in 2024. However, all civil charges from the SEC have now been officially dismissed on the condition that the same lawsuit cannot be re-filed in the future.
Washington's Winds of Change: Cryptocurrency Policy Relaxed
The SEC's suspension of the Binance lawsuit is not an isolated event, but a clear manifestation of the US government's shift in regulatory thinking towards the blockchain industry. Since early 2025, under the new leadership of SEC Chairman Paul Atkins, the organization has slowed down its crackdown on crypto projects and encouraged a more flexible regulatory framework.
At the same time, the US Department of Justice also disbanded the Crypto Crimes Prosecution Unit, a move that analysts see as a political signal to reshape Washington's priorities.
Link to WLF and Huge Investment from the Middle East
A notable detail is that the case was closed just weeks after Binance announced a strategic partnership with World Liberty Financial (WLF) – a prominent financial institution with indirect ties to leading political figures, including former President Donald Trump.
The deal paved the way for Binance to receive a $2 billion investment from MGX Capital, an Abu Dhabi-backed fund. The capital commitment was entirely in USD1, a new stablecoin issued by WLF, backed by US Treasury assets and cash instruments.
Behind the scenes: Politics and crypto are merging?
The SEC’s withdrawal from the Binance case amid Binance’s collaboration with politically influential organizations has raised many questions: Is cryptocurrency gradually becoming part of the global financial-political strategy?
Many experts warn that the relationship between crypto exchanges and political entities could blur the line between public and private interests, especially as the US enters a tense election season.
Conclusion: A new chapter for Binance and the entire crypto industry?
The SEC’s dismissal of its lawsuit against Binance is not only a legal victory for the world’s largest exchange, but also a symbol of the “normalization” of cryptocurrencies in the eyes of US lawmakers.
However, behind the massive financial deals and political lobbying remains an open question: Is the crypto industry being given a chance to be reborn – or is it simply being reshaped to the benefit of the most powerful?