A landmark event took place in federal court in Washington, D.C., on May 29 — the U.S. Securities and Exchange Commission (SEC) and the largest cryptocurrency exchange Binance filed a joint motion to dismiss the lawsuit.
Recall that in June 2023, the SEC filed a lawsuit alleging that Binance violated securities laws. The situation looked tense, and the future of one of the leading crypto exchanges in the world remained in question.
However, in November 2023, the parties reached an agreement. Binance and its CEO Zhao paid a fine of $4.3 billion. Zhao resigned as CEO and was sentenced to four months in prison.
Binance’s reaction
Cryptocurrency exchange Binance called the decision “a huge win for crypto.” The company’s representatives thanked President Donald Trump and SEC Chairman Paul Atkins for their assistance in resolving the situation.
Implications for the SEC and Cryptocurrency Regulation
The SEC’s move is a clear example of the regulator’s changing approach to cryptocurrencies under the Trump administration. Previously, the SEC was actively taking enforcement actions against crypto firms. However, under the new leadership, the situation has changed.
Under the Biden administration, complaints against major crypto platforms such as Coinbase, Consensys, and Kraken were dismissed or settled. Investigations into Circle, Immutable, and others were also dropped.
The Role of Paul Atkins
Particularly noteworthy is the figure of Paul Atkins, appointed by Trump to head the SEC. Atkins announced plans to create a structure for regulating digital assets. To discuss policy, the SEC organized a series of roundtables with representatives of the crypto industry.
This stage in the relationship between the regulator and the crypto sector demonstrates that the approach to regulation can change depending on the political environment and the leadership of the regulator. The future of cryptocurrencies in the US remains a subject of debate and policy changes.
