• The SEC has voluntarily dismissed its lawsuit against Binance, the leading cryptocurrency exchange.
• This dismissal indicates a significant policy shift in how the SEC regulates cryptocurrency.
• The case, initiated in June 2023, involved allegations of misleading practices and unregistered securities.
• This dismissal is final, preventing the SEC from refiling the case.
• Binance views this decision as a substantial win for the cryptocurrency industry.

The U.S. Securities and Exchange Commission (SEC) has voluntarily dismissed its lawsuit against Binance, the world's largest cryptocurrency exchange, as revealed in a court filing on Thursday. This decision to dismiss the case comes after a joint stipulation was signed by legal representatives of the SEC, Binance, and its founder, Changpeng Zhao, and was submitted to a federal court in Washington, D.C. The lawsuit had accused Binance of various allegations, including artificially inflating trading volumes and unlawfully facilitating trades of multiple tokens that the SEC had deemed unregistered securities, according to Channel News Asia and Reuters.

The SEC's dismissal of the enforcement case was described as a policy decision that reflects the regulator's changing approach toward cryptocurrency. According to SEC officials, deeming the dismissal as “appropriate in the exercise of its discretion,” the case's disposal also signifies an intent to move away from aggressive regulatory enforcement under previous administrations, especially during President Joe Biden’s term, as stated by HuffPost.

This case, previously filed in June 2023, remains separate from Binance's guilty plea in November 2023 regarding anti-money laundering violations, which resulted in a hefty fine of $4.3 billion, highlighting the ongoing scrutiny over the cryptocurrency sector. The dismissal comes amidst a broader context of changing regulatory attitudes, including the recent establishment of a special task force by the SEC to address cryptocurrency regulations and market practices, as noted by South China Morning Post.