SEC Officially Ends Crypto Enforcement Era: Binance, Coinbase Cases Dismissed

The Announcement: Joint Filings Signal Policy Pivot

On May 29, 2025, Binance and the SEC jointly filed a stipulation to dismiss the agency's landmark lawsuit against the world's largest crypto exchange and its founder Changpeng Zhao—a case that had dragged on for nearly two years. Just weeks earlier, the SEC had similarly dropped its enforcement action against Coinbase, effectively closing two of the most consequential crypto litigations in U.S. history. These dismissals—with prejudice, meaning they cannot be refiled—represent the final chapter of what former Chair Gary Gensler called an "extensive web of deception" spanning 13 charges against Binance alone. Reuters

The moves culminate a broader SEC reversal: under Atkins' leadership, the agency has dismissed or paused 12+ major crypto enforcement cases since early 2025, including actions against Kraken, Cumberland, and various DeFi protocols. Binance called it "a landmark moment," crediting Atkins and the Trump administration for recognizing that "innovation can't thrive under regulation by enforcement." Coinbase and other defendants have expressed similar relief, with industry executives framing the shift as validation after years of legal uncertainty.

From Gensler’s Crypto Crackdown to Atkins’ Reset

The Gensler Era: 13 Charges, Zero Wins

The SEC's crypto enforcement campaign began in earnest in June 2023 with parallel lawsuits against Binance and Coinbase, alleging violations of securities laws through unregistered token offerings, misleading investors, and improper handling of customer funds. Gensler characterized Binance's alleged infractions as an "extensive web of deception," including artificial trading volume inflation, commingling of customer assets, and facilitation of trades in tokens the SEC classified as unregistered securities.

Coinbase faced similar charges around 13 specific tokens, with the SEC arguing that most digital assets should be treated as securities requiring registration—a position repeatedly challenged and partially rejected by federal courts. By mid-2025, Gensler's strategy had yielded few courtroom victories, numerous appellate setbacks, and billions in legal costs for both regulators and defendants. The incoming Trump administration explicitly campaigned against this approach, promising to make America the "crypto capital of the planet." [

Atkins Takes the Helm: Crypto‑Friendly Confirmed

Paul Atkins, confirmed as SEC Chair following Trump's inauguration, brought immediate change. A veteran of the 2008 financial crisis era and long-time advocate for lighter-touch regulation, Atkins wasted no time signaling a new direction. In February 2025, the SEC and Binance agreed to pause their battle "to facilitate potential resolution," followed by similar stays in other cases. By May, the pattern was clear: dismissals rather than settlements, rulemaking rather than litigation.

Commissioner Hester Peirce, a consistent Gensler critic known as "Crypto Mom," celebrated the shift during a Las Vegas appearance, noting that the SEC was finally "evaluating enforcement cases based on their specific facts and circumstances" rather than applying a one-size-fits-all securities framework to novel technologies. Atkins also rescinded Staff Accounting Bulletin 121 (SAB 121), a Gensler-era rule that had forced banks to consolidate crypto assets on their balance sheets, effectively blocking custodial services.

What Got Dismissed: The Gensler Playbook Unravels

Binance: 13 Charges Vanish

The Binance case represented the SEC's most ambitious crypto enforcement action. Filed in New York federal court, it alleged artificial volume manipulation, customer fund misappropriation, surveillance failures, and operation of an unregistered securities exchange. The SEC specifically targeted Binance's BNB token, staking services, and offshore exchange access for U.S. customers as securities violations. Judge Amy Berman Jackson had already rejected parts of the SEC's claims on motions to dismiss, weakening the government's position.

The dismissal eliminates all 13 charges with prejudice, clearing Binance to resume full U.S. operations without the cloud of litigation. CZ, who pleaded guilty to separate money transmission charges in 2023, called it validation of the exchange's compliance overhaul.

Coinbase and Beyond: 12+ Cases Closed

Coinbase's dismissal followed a similar pattern: charges around 13 unregistered tokens evaporated after courts questioned the SEC's Howey Test application to digital assets. The agency also dropped cases against Kraken (staking program), Cumberland (crypto lending), and various DeFi platforms accused of unregistered broker activity.

Democratic lawmakers criticized the moves as potential "pay-to-play," citing crypto industry donations to Trump allies, but Atkins maintained that each dismissal rested on "specific facts and policy considerations" rather than political pressure. Regardless of motives, the effect is the same: a regulatory slate wiped clean.

Immediate Market Impact: Relief Rally, ETF Momentum

Crypto markets responded swiftly to the news. Bitcoin surged 8% toward $92,000 in the 48 hours following the Binance dismissal filing, while Ethereum climbed above $3,100 amid optimism around spot ETF staking approvals. Total crypto market capitalization added $180 billion, with altcoin narratives like Solana and XRP gaining particular traction.

U.S. spot Bitcoin ETF flows flipped positive for the first time in weeks, with BlackRock's IBIT recording $340 million in net inflows over two days. Analysts attributed the rebound to reduced regulatory overhang, particularly for exchanges handling ETF creation/redemption flows. Coinbase shares jumped 12% in after-hours trading, reflecting investor confidence in the company's compliance-first positioning.

What Comes Next: Rulemaking Takes Center Stage

Spot ETFs for Altcoins, Staking Clarity

The dismissals clear regulatory hurdles for the next wave of spot crypto ETFs. Solana, XRP, and Litecoin filings—previously stalled by Gensler-era scrutiny—are now fast-tracked for approval, potentially launching by Q3 2025. Ethereum spot ETFs also gained staking approval pathways, with issuers like VanEck and 21Shares preparing yield-bearing products.

Stablecoin legislation via the Clarity Act gains momentum after February's White House roundtable, positioning Tether, USDC, and PYUSD for federal frameworks rather than state-by-state licensing battles.

DeFi and Market Structure Rules

Atkins has prioritized market structure rulemaking over enforcement. Roundtables hosted by Commissioner Peirce are developing frameworks for decentralized exchanges, automated market makers, and yield protocols—areas previously targeted as unregistered securities. The SEC's planned "Crypto Task Force 2.0" aims to deliver comprehensive guidance by Q4 2025.

Custody rules are also loosening: SAB 121's repeal enables banks to offer crypto safekeeping without punitive accounting, potentially unlocking billions in institutional capital. This positions Coinbase Custody, BitGo, and Fidelity Digital Assets as bridges between TradFi and on-chain ecosystems.

Critics and Risks: Pay‑to‑Play or Principled Reset?

Not everyone celebrates the pivot. House Democrats accused Atkins of "pay-to-play" favoritism, citing $100M+ in crypto PAC donations to Trump allies during 2024. They argue the dismissals undermine investor protections against fraudsters like those behind Unicoin's $100M scam, which the SEC pursued even amid the broader pullback.

Industry defenders counter that Gensler's scattershot approach chilled innovation without deterring bad actors. With clear rules now emerging, legitimate projects can thrive while fraud faces targeted enforcement rather than blanket crackdowns.

Global Implications: U.S. Reclaims Crypto Leadership

The SEC's reversal positions America to recapture crypto dominance from offshore hubs. Binance's U.S. relaunch, Coinbase's institutional expansion, and ETF pipelines could drive $50B+ in fresh capital inflows by 2026. Binance

Internationally, the EU's MiCA framework and Singapore's licensing regime face stiffer U.S. competition. Trump's "crypto president" pledge—bolstered by Atkins' execution—transforms regulatory risk from crypto's biggest overhang to its primary tailwind.

The question now is execution: can rulemaking match the speed of enforcement relief, and will innovation surge to fill the regulatory vacuum? 2025's dismissals were Day One. The real test comes in implementation.