Changpeng Zhao (CZ), former CEO of Binance, has expressed his delight after the U.S. SEC moved to dismiss its lawsuit against both him and the company.
In a social media post, CZ shared an image of former SEC Chair Gary Gensler wearing a red clown nose, injecting a tone of irony into the situation. Alongside the image, CZ wrote, “Crypto is still here,” signaling renewed hope for the industry amid a shifting regulatory stance under the new SEC leadership.
In parallel, Binance expressed gratitude to SEC Chairman Paul Atkins and the Trump administration after the SEC dropped its lawsuit. The company thanked them for opposing regulation through enforcement actions.
Crypto is still here. pic.twitter.com/W3WC1HQBpb
— CZ 🔶 BNB (@cz_binance) May 29, 2025
SEC Ends Enforcement Action
Importantly, the dismissal was filed with prejudice, preventing the SEC from reopening the case. A Binance spokesperson described the outcome as a landmark moment and credited former SEC Chair Paul Atkins and the Trump administration for a regulatory approach that supports innovation without excessive enforcement.
The SEC’s decision to drop the lawsuit comes after years of allegations that Binance and CZ offered unregistered securities and failed to block U.S. users from the exchange. The regulator also accused Binance of commingling customer funds through a “web of deceit.”
However, the SEC clarified the dismissal was a discretionary policy move and did not represent its position on other crypto-related cases.
Regulatory Shift Following Years of Legal Pressure
This lawsuit followed a period of intense scrutiny under SEC Chair Gary Gensler, who led aggressive enforcement actions against crypto firms. Gensler’s SEC alleged that Binance and other companies sold unregistered securities as digital tokens.
However, several high-profile cases have been dropped since Paul Atkins assumed the SEC chairmanship under the Trump administration. The SEC’s softened stance is also reflected in other recent dismissals, such as cases against Coinbase and inquiries into PayPal’s PYUSD stablecoin.
Separately, Binance pleaded guilty in 2023 to federal anti-money laundering and sanctions violations, resulting in a $4.32 billion penalty. CZ served a four-month prison sentence and was released in September 2024.
New SEC Leadership Calls for Regulatory Clarity
Notably, Paul Atkins, the new SEC Chair, has outlined a strategy to evolve the commission’s approach to crypto regulation. He advocates shifting focus from enforcement to clearer rulemaking tailored to decentralized blockchain assets.
Atkins emphasized building regulatory frameworks compatible with crypto’s decentralized nature while protecting investors. The SEC is reviewing issuance guidelines, aiming to encourage compliance through clarity rather than enforcement. This marks a distinct change from the previous administration’s aggressive regulatory posture.
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