SEC Drops Binance Lawsuit: What It Means for US Crypto and Bitcoin's Surge

SEC Drops Lawsuit Against Binance: A Turning Point for Crypto Regulation

The U.S. Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Binance, the world’s largest crypto exchange by volume, and its founder Changpeng Zhao. This move, reported by CNBC and ABC News, marks the end of one of the last major crypto enforcement actions in the United States. The case, originally filed in June 2023, accused Binance of illegally serving U.S. users, inflating trading volumes, and commingling customer funds. The SEC also alleged that Binance enabled trading in unregistered securities, a claim previously used against other exchanges such as Coinbase and Kraken.

The dismissal comes after Binance reached a $4.3 billion settlement with the U.S. government last year, which included Zhao pleading guilty and stepping down as CEO, while retaining much of his wealth. The SEC’s motion to dismiss was granted with prejudice, preventing the agency from refiling the same claims. Commissioner Hester Peirce stated that the move reflects a shift toward clearer rulemaking after years of regulatory ambiguity, emphasizing the need for clear rules rather than case-by-case enforcement.

Binance has recently deepened its ties with World Liberty Financial, a project linked to the Trump family, and is taking a $2 billion investment from the Emirati state fund MGX entirely in USD1, a stablecoin launched by the World Liberty team. The Trump administration has also made efforts to position itself as an ally to the crypto industry, with the Justice Department shutting down its crypto enforcement team and the Commodity Futures Trading Commission now led by a venture capitalist with close ties to crypto.

Key Figures	Details
Settlement Amount	$4.3 billion
Investment from MGX	$2 billion (in USD1 stablecoin)
Trump-linked Token Market Cap	~$2.4 billion

Infobox: The SEC’s dismissal of the Binance lawsuit signals a regulatory shift in the U.S., with a focus on clearer rules and industry engagement. Binance continues to expand its global footprint, particularly through partnerships with entities linked to the Trump family. (Sources: CNBC, ABC News)

Bitcoin Hits All-Time High and U.S. States Advance Crypto Legislation

May was a landmark month for the cryptocurrency sector, as reported by TradingView. Bitcoin (BTC) reached a new all-time high above $111,000, with its market capitalization surpassing $2.2 trillion on May 22, overtaking Amazon. The price surge was partly attributed to positive macroeconomic developments, including a 90-day suspension of U.S.-China tariffs announced by President Donald Trump on May 12. This news led to a temporary spike in BTC price to $105,000 before a slight correction.

On the legislative front, five U.S. states enacted new crypto-related laws. Texas established a state Bitcoin reserve, while New Hampshire enabled its treasurer to invest in digital assets. Arizona created a Bitcoin and Digital Assets Reserve Fund, allowing the state to claim ownership of unclaimed digital assets after three years and to stake these assets for rewards. Nebraska introduced new regulations for Bitcoin miners, requiring those using 1 megawatt or more to cover infrastructure upgrade costs. Oregon included crypto in its Uniform Commercial Code.

Date	Event	Value
May 22	Bitcoin Market Cap	$2.2 trillion
May 2025	Bitcoin All-Time High	$111,970
May 29	Coinbase Stock Price	$248.84 (+19.37% in May)

Texas: State Bitcoin reserve established
New Hampshire: Treasurer can invest in digital assets
Arizona: Reserve fund for unclaimed digital assets
Nebraska: New rules for Bitcoin miners
Oregon: Crypto added to Uniform Commercial Code

Infobox: Bitcoin’s price and market cap reached historic highs in May, while five U.S. states advanced significant crypto legislation, reflecting growing mainstream adoption and regulatory clarity. (Source: TradingView)

Regulatory Clarity Seen as ‘Foundational’ for Crypto Industry

According to CFO Dive, the Trump administration’s pro-crypto stance is fostering optimism in the industry. Vice President JD Vance highlighted at the 2025 Bitcoin conference that cryptocurrency now has a “champion and an ally in the White House.” The administration has appointed industry-friendly regulators and is considering the creation of a national stockpile of digital assets. Congress recently passed the “Genius Act,” establishing the first regulatory framework for stablecoins.

Dan Chen, CFO of Gemini Trust, emphasized that regulatory clarity is essential for business growth and compliance. He noted that 24% of individuals now own cryptocurrency, up from 21% the previous year, according to Gemini’s 2025 Global State of Crypto report. The report suggests that Trump’s policies are inspiring new interest among non-owners. Chen also pointed out that the total value of all crypto is around $3 trillion, compared to the $60 trillion U.S. stock market, indicating significant room for growth.

“Regulatory clarity is simply put, an ability for business to know what the rules are and how to remain in compliance with the rules,” said Dan Chen, CFO of Gemini Trust.

24% of individuals own cryptocurrency (2025)
Total crypto market value: ~$3 trillion
U.S. stock market value: ~$60 trillion
Genius Act: First regulatory framework for stablecoins

Infobox: The Trump administration’s regulatory initiatives and the passage of the Genius Act are seen as pivotal for the crypto industry’s growth, with clear rules expected to drive further adoption. (Source: CFO Dive)

Garantex Successor Grinex Moves $1.66 Billion Through Crypto Exchanges

Cointelegraph reports that Grinex, identified as the successor to the sanctioned Russian platform Garantex, has moved more than $1.66 billion in crypto through exchanges. Despite warnings from blockchain analytics firm Global Ledger, exposure to Grinex wallets continues to rise. By May 30, Global Ledger had tracked $2.41 billion in transactional exposure, with $1.66 billion moving in and out of 180 cryptocurrency exchanges.

Most of the transactions involved Tron-based USDt (USDT), with Bitrace reporting $649 billion in stablecoin flows exposed to high-risk addresses in 2024, over 70% of which occurred on the Tron network. U.S., German, and Finnish authorities dismantled Garantex’s infrastructure in March, and Tether froze $27 million in stablecoins on the sanctioned exchange. Garantex had processed around $96 billion in crypto transactions since April 2019. After the crackdown, Garantex allegedly resurfaced as Grinex, moving over $60 million in Russian ruble-backed stablecoins to the new platform.

Metric	Value
Funds Moved by Grinex	$1.66 billion
Total Transactional Exposure	$2.41 billion
Stablecoin Flows to High-Risk Addresses (2024)	$649 billion
Garantex Transactions Since 2019	$96 billion

Infobox: Grinex, the successor to Garantex, has facilitated over $1.66 billion in crypto transfers, highlighting ongoing challenges in tracking and regulating illicit crypto flows. (Source: Cointelegraph)

US Government Urges Supreme Court to Reject Coinbase User’s Crypto Records Challenge

The U.S. government has asked the Supreme Court to reject a challenge by Coinbase user James Harper, who sought to block the IRS from accessing his crypto transaction records, according to Cointelegraph. The government argued that Harper voluntarily shared his data with Coinbase and that the IRS followed proper legal procedures through a judicially approved summons. The case stems from a 2016 IRS investigation into tax underreporting on cryptocurrency gains, which led to a “John Doe” summons for Coinbase to turn over records on high-volume customers.

Lower courts ruled that Coinbase’s records are business documents, not private papers, and that the IRS acted lawfully. The government cited Supreme Court precedent, emphasizing that individuals have no reasonable expectation of privacy in financial records held by third parties. The Supreme Court has not yet decided whether to hear the case. Meanwhile, Coinbase disclosed a data breach on May 15, impacting about 1% of its monthly transacting users, with stolen data including customer names, account balances, and transaction histories. At least six lawsuits were filed following the breach.

IRS investigation led to “John Doe” summons for Coinbase records
Coinbase data breach affected ~1% of users
At least six lawsuits filed after breach

Infobox: The U.S. government maintains that Coinbase users have no privacy right over records held by the exchange, as the Supreme Court considers whether to hear the case. Coinbase also faces legal fallout from a recent data breach. (Source: Cointelegraph)

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