SEC, Binance credit Crypto Task Force for resolution

According to Eleanor Terrett, the SEC and Binance have filed a joint stipulation seeking a dismissal in the agencys ongoing litigation against the exchange.

Excerpts from court documents in the SEC, Binance case. Source: Eleanor Terrett

Terrett shared the news via her X page, attaching an image from the legal filing, which identified the SEC as the plaintiff and Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings Inc., and Changpeng Zhao as the defendants.

SEC, Binance credit Crypto Task Force for resolution

The SEC initiated this civil enforcement action against Binance on June 5, 2023, and it filed an amended complaint on October 16, 2024 (Docket No. 282).

The joint stipulation seeks to allow both parties to dismiss the ongoing lawsuit.

“Whereas, in light of the foregoing, and in the exercise of its discretion and as a policy matter, the Commission believes the dismissal of this Litigation is appropriate,” the May 29 filing in the District Court for the District of Columbia read.

Both parties hinted at the possibility of a dismissal in February when the SEC and Binance asked the judge to stay the case. Then again, in April, when the same request was filed.

The parties mentioned how the establishment of the SECs Crypto Task Force “might impact and facilitate the potential resolution of this litigation,” in the court documents.

The SECs Acting Chairman, Mark T. Uyeda introduced the task force on January 21, 2025, to present a regulatory framework for crypto assets in the lead up to providing regulatory clarity for the cryptocurrency space.

Paul Atkins SEC sets a precedent

The SECs willingness to dismiss Binances lawsuit follows a trend that has seen the agency end its litigation against other crypto companies like Coinbase, Consensus and Kraken, which were settled earlier this year. It has also ended investigations into Circle, Immutable and several others.

Sentiments on X are bullish about the SEC and Binance finally burying the hatchet, but a number of users in the reply section of Eleanor Terrett‘s X post have drawn comparisons to the protracted settlement of the SEC’s case against Ripple Labs.

The Ripple case is a similar high-profile case. It began in December 2020 and has seen multiple developments, including a final judgment on August 7, 2024, imposing a $125 million civil penalty on Ripple.

Still, the SEC appears committed to ending aggressive enforcement actions initiated against crypto firms during Gary Genslers tenure with the financial watchdog.