U.S. SEC Files to Dismiss Lawsuit Against Binance

TL;DR

• The SEC wants to end its 2-year lawsuit against cryptocurrency exchange Binance.

• The regulator sued Binance in June 2023 for allegedly operating as an unregistered broker, clearinghouse, and exchange.

SEC Files to End Its Lawsuit Against Binance

The United States Securities and Exchange Commission has filed to end its 2-year lawsuit against Binance, the world’s leading cryptocurrency exchange. However, the regulator didn’t provide an explanation in its court filing.

Binance and the SEC filed a joint motion, stating that the case was already paused while the SEC's new crypto task force worked to put together a regulatory framework for the cryptocurrency space. The filing added that,

"In the exercise of its discretion and as a policy matter, the Commission believes the dismissal of this Litigation is appropriate. The Commission's decision to seek dismissal of this Litigation does not necessarily reflect the Commission's position in any other litigation or proceeding."

The parties want the case dismissed with prejudice, implying that the regulator cannot bring this lawsuit against Binance again in the future. Furthermore, Binance and its affiliate entities would be blocked from filing a suit or complaint against the SEC in relation to this lawsuit. 

In June 2023, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO, Changpeng Zhao (CZ), for violating US securities rules.

At the time, the SEC alleged that the cryptocurrency exchange allowed high-value U.S. customers to trade on its platform. The regulatory agency added that this is a violation of U.S. securities laws, which prohibit unregistered exchanges from providing trading services to US customers.

While commenting on this latest development, an external spokesperson for Binance.US said they were pleased that the SEC fully dismissed its charges against Binance.US. The spokesperson added that,

"Today’s news is a major milestone for our company, as putting this matter to rest allows us to focus entirely on growing our business and work on restoring our relationships that were impacted by the SEC. We are excited about the future of Binance.US and crypto in the U.S. and look forward to continuing to offer access to crypto in the U.S., while maintaining our commitment to compliance and our customers."

The SEC has recently ended its lawsuits against several cryptocurrency companies in recent weeks, including Coinbase and Kraken.