SEC Drops Binance Case, Crypto Market Optimistic

Coin WorldFriday, May 30, 2025 9:44 am ET
2min read

The U.S. Securities and Exchange Commission (SEC) has officially abandoned its case against Binance, marking a significant victory for the global crypto industry. This decision has sparked discussions about a potential market-wide recovery and renewed optimism for Binance’s native coin,

. The SEC’s dismissal of the case “with prejudice” indicates that the matter is permanently closed, preventing any future reopening. This move aligns with the current administration’s shift in regulatory approach towards digital assets, signaling a departure from the previous enforcement-heavy tactics.

Paul Atkins, a well-known pro-crypto figure, now holds a high-ranking position at the SEC. His influence is seen as pivotal in this policy reversal, moving the agency away from the stringent regulations of the Gary Gensler era. The current administration appears more focused on fostering U.S. blockchain innovation, viewing it as crucial for maintaining the country’s competitive edge in the financial sector. Binance publicly celebrated this victory, crediting Chairman Atkins and the Trump-era allies for the policy shift, and expressing optimism for U.S. innovation.

The original lawsuit, filed in June 2023, accused Binance of several serious violations, including artificial inflation of trading volumes, misrepresentation to investors, improper handling of client funds, and the sale of unregistered securities. The complaint named Changpeng Zhao, the founder of Binance, and was filed during a period of heightened tensions between U.S. regulators and the crypto industry. The dismissal of these allegations not only relieves Binance but also suggests that future litigation may face greater challenges. Critics argue that the SEC’s previous strategies blurred the line between fraud and innovation, stifling legitimate blockchain projects.

With the lawsuit now permanently closed, Binance is positioned to rebuild its reputation and potentially expand more aggressively in the U.S. market, from which it had partially retreated during the height of the legal pressure. The cryptocurrency market has seen a general cooling off in recent days, with Bitcoin’s value dropping from a recent high of $111,814 to around $105,000. Despite this, analysts remain optimistic about BNB’s medium-term future. By August 12, BNB is expected to rise to $857.04, which would be a new all-time high. This goal has sparked new rumors that BNB could finally break beyond the $1,000 mark, a psychological barrier that would put it in the top tier of mega-cap cryptocurrencies.

Several factors could drive this rally, including legal clarity, reduced regulatory risk, and BNB’s utility within Binance’s ecosystem. The token is utilized for trading fee discounts, launching new tokens, and DeFi features. Michaël van

Poppe, a crypto analyst, noted that BNB has been fundamentally undervalued compared to its dominance in trading volume and infrastructure. With the lawsuit no longer an overhang, the token could finally reflect that value. If this shift continues, it might signal a new direction in U.S. cryptocurrency regulation, with the SEC taking a more collaborative and guidance-based approach. This marks a significant departure from the years 2021 to 2023, when Ripple (XRP), Coinbase, and Uniswap Labs faced legal threats. The SEC’s decision to drop the Binance case could also pave the way for new laws or executive acts that provide clearer regulatory guidelines for the industry.