The US Securities and Exchange Commission moved to end its legal battle against crypto exchange Binance Holdings Ltd., the latest sign of the regulator’s dramatic shift in how it polices cryptocurrency.
The regulator and the exchange’s co-founder Changpeng Zhao filed a joint motion on Thursday to stay the case in the US District Court for the District of Columbia. The move follows a joint request in February to pause the lawsuit for 60 days.
At the time, the SEC and Zhao said then-Acting Chairman Mark Uyeda’s formation of a special agency task force to set crypto regulatory policy warranted a pause. The task force’s work could impact the lawsuit’s resolution.
The latest filing calls for dismissing the case with prejudice, which means it can’t be refiled, and without costs or fees to any party.
Binance in a post on X called the dismissal a “huge win for crypto.” The firm thanked SEC Chair Paul Atkins and President Donald Trump “for pushing back against regulation by enforcement.”
The SEC sued Binance in June 2023, alleging the firm and its co-founder mishandled customer funds, misled investors and regulators and violated US securities laws. The regulator also accused Binance of offering unregistered securities to US investors.
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The firm and Zhao in November 2023 pleaded guilty to separate charges that it violated anti-money laundering and US sanctions, with the firm agreeing to pay US$4.3 billion.
Zhao also agreed to pay a US$50 million fine and step down as CEO. This followed a years-long investigation by the US Department of Justice, the US Commodity Futures Trading Commission and the Treasury Department.
