The US Securities and Exchange Commission (SEC) asked a federal court on 29 May to reject his civil complaint against Binance and his founder, Changpeng ‘CZ’ Zhao, according to a four -page application in court.
Judge Amy Berman Jackson placed the case on one 60-day break in February After both parties had told the court that a new SEC Crypto Task Force, led by commissioner Hester Peirce, could ‘influence and facilitate’ the resolution of the lawsuit.
The decision has suspended the stay at the Deadlines of Discovery, while the Task Force rated whether existing securities rules applied to locations for digital asset.
That assessment then became unfolding when Binance continued to work with an earlier consent order that required greater transparency in storage controls and the segregation of American customers.
Binance called the decision a “huge victory for crypto” in a statement via X, and added:
“The case of the SEC against us is being rejected. Thanks to the chairman Atkins & the Trump team for reducing regulation by enforcement. American innovation is back on track – and it’s just the beginning.”
Sec -files dismissal in the event of a legal fight with Binance
The submission states that the committee ‘hereby’ rejects’ all the causes of action against each suspect.
The notification does not include a monetary settlement and the document does not indicate whether dismissal is at or without prejudice.
Because the defendants have not submitted counterfeiting, the agency can fall unilaterally under the federal line 41 (a) (1) (a) (i). As soon as the employee processes the notification, the signature of Judge Jackson is expected to terminate the case.
While the SEC closes this case, Binance.us remains subject to the consent decision, which is required for every three-month compliance reports and external audits from Custodial portfolios. Every future enforcement would require a new complaint to be submitted.
The court is expected to close the docket when it receives the notification of dismissal and formally the two -year legal battle between Securities and Exchange Commission v. Binance Holdings Ltd., BAM Trading Services Inc. and Changpeng Zhao receives.
Complaint targeted exchange structure
The SEC submitted the original action in June 2023. Researchers claimed that Binance and Binance.us functioned as unregistered stock exchanges, broker dealers and clearing agencies.
The complaint claimed that the Platform Trade Volumes had blown up through wash, diverted customer assets to market companies that were controlled by ZHAO and invested investors about surveillance systems designed to deter manipulation.
The agency sought preliminary exemption, disgorgement of profit and civil fines.
Binance denied misconduct and argued that his digital assets -listings were not effects under the Howey test and that global activities fell outside the jaw area of the SECs.
Parallel criminal investigation by the US Department of Justice was concluded in November 2024 with Binance who plead guilty to Bank Secrecy ACT -violations and agree with a settlement of $ 4.3 billion.
Moreover, Zhao was sentenced to four months in prison, which he served and completed in September 2024.