The US Securities and Exchange Commission (SEC) has formally dropped its lawsuit against cryptocurrency exchange Binance, marking a symbolic end to one of the most aggressive crypto crackdowns in US history. The dismissal comes after Binance secured a $2 billion investment from Emirati state fund MGX in USD1, a stablecoin launched by the Trump family’s World Liberty team.
In June 2023, the SEC initially accused Binance of violating regulations including illegally serving US users, inflating trading volumes, and commingling customer funds. The agency also claimed that Binance unlawfully enabled trading in crypto assets viewed as unregistered securities.
Binance’s largest investor is now its biggest backer, with the $2 billion investment further solidifying its position as the world’s largest digital assets exchange by volume. The company has also forged ties with World Liberty Financial, which aims to be a crypto bank and funnels 75% of profits to entities linked to the Trump family.
The SEC’s move marks a shift in the agency’s approach towards clearer rulemaking after years of ambiguity. Commissioner Hester Peirce stated that the enforcement cases will now be reviewed on a “facts and circumstances basis,” rather than relying on unclear rules. The commission aims to write those rules, enforce them, and avoid open season for scammers.
The decision comes as the Trump administration seeks to prove its allyship with the crypto industry. The Justice Department has shut down its crypto enforcement team, and the Commodity Futures Trading Commission is set to be led by a venture capitalist with close ties to crypto.
Source: https://www.cnbc.com/2025/05/29/sec-drops-binance-lawsuit-ending-one-of-last-remaining-crypto-actions.html