- The SEC officially dropped its legal action against Binance and Changpeng Zhao with prejudice which brought an end to a major crypto regulatory action.
- According to Binance, getting rid of the chairman is a major move toward improving global trust in crypto progress and regulation.
- The new decision means stricter enforcement is giving way to policy-based rules which have an effect on U.S. and international digital assets.
The legal case against Binance and its founder Changpeng Zhao which was brought by the U.S. Securities and Exchange Commission, has been dropped. The court papers submitted in June 2023 say the exchange was found to have artificially increased its reported trading volumes, used customer money wrongly and misled investors about how it did business. A dismissal with prejudice stops the agency from reopening the same case.
Binance said that the move marks a new step in regulating cryptocurrencies in the US. In the company’s statement, it says responsible changes to digital assets are getting more approval. Binance stressed that the result is especially important for U.S. entrepreneurs and for people around the world who need certainty about crypto policies.
Shift in Policy Might Have Global Effects on Crypto
The SEC stated that no judgment was made on digital assets and they acted out of discretion and policy reasons, not legal principles. Even so, this resolution officially concludes one of the agency’s important crypto cases. Binance says the dismissal signals that tough regulatory enforcement could be coming to an end.
Binance described the case resolution as a win for U.S. consumers, financial innovation, and the global crypto landscape. The company stated that the decision enhances the legitimacy of the digital asset sector. Binance also indicated that confidence in crypto markets from the U.S. to Europe could increase following this legal outcome.
Call for Continued Progress in Regulation
While celebrating the development, Binance acknowledged that more work is needed. The company stressed that although the case is closed, efforts to improve transparency and compliance must continue. Binance believes that the dismissal reflects a broader commitment by U.S. authorities to support constructive innovation in financial technology.
