Binance Walks Free as SEC Ends Case Fueling Trump’s Crypto Revolution

U.S. Securities and Exchange Commission (SEC) has officially dropped its high-profile lawsuit against Binance and its billionaire founder, Changpeng Zhao. The legal retreat—filed Thursday in a Washington D.C. federal court—marks the end of one of the last major crypto enforcement actions left standing and signals a new era of crypto-friendliness under the Trump administration.

First launched in June 2023, the SEC’s case accused Binance of allowing unregistered securities trading, inflating trade volumes, and mismanaging user funds. The dismissal now comes just months after Zhao’s $4.3 billion settlement with the U.S. government and a guilty plea that cost him the CEO title—but not his empire. The case was dismissed with prejudice, barring the SEC from bringing back the same charges.

The decision lands as part of a broader rollback of crypto regulations, one that’s being openly embraced by the White House. Since regaining office, the former U.S. President has leaned fully into digital assets. His family’s venture, World Liberty Financial (WLF), is actively investing in the sector and recently helped broker a staggering $2 billion deal between Binance and Abu Dhabi-backed MGX, with funds entirely transferred via the new USD1 stablecoin.

WLF’s growing footprint is particularly visible in Pakistan, where the group’s co-founder—Zack Witkoff, son of the U.S. Middle East envoy—has secured ties with the government. In a surprise move, Zhao has even been appointed as an adviser to Pakistan’s national Crypto Council, positioning Binance to influence digital finance policies in emerging markets.

According to Commissioner Hester Peirce, the SEC’s internal shift is about prioritizing clarity over confrontation. Speaking with CNBC, the top regulator emphasized the agency’s focus on crafting definitive rules instead of engaging in prolonged courtroom battles. “We didn’t have a clear set of rules,” she admitted, adding, “It’s not time for people to think they have a free pass to go rip people off in the name of crypto.”

Critics, however, argue that the timing of the dismissal—so soon after President Trump’s crypto-friendly pivot—raises eyebrows. Not only has the Trump family doubled down on investments like the $TRUMP memecoin (reportedly valued at $2.4 billion), but they’ve also used crypto as a vehicle to re-engage with international allies and affluent donors.

Recent events, including a private dinner at Trump’s Virginia golf club for top $TRUMP coin holders and a $2.5 billion crypto reserve announcement by Trump Media & Technology Group, highlight the administration’s growing crypto ecosystem. With Trump as the largest shareholder in the parent company of Truth Social and his sons deeply embedded in related crypto ventures, critics warn of potential conflicts of interest.

Nevertheless, the mood within the blockchain industry is jubilant. The SEC’s dismissal, paired with a loosening regulatory grip, paints a future where the world’s biggest crypto exchange can not only survive but thrive—so long as the winds of Washington remain favorable.