Binance walks free but crypto's future still hangs on politics
Binance walks free but crypto's future still hangs on politics originally appeared on TheStreet.
[From the Editor's desk]
Binance, the world's largest cryptocurrency exchange, just walked out of one of the biggest crypto lawsuits in U.S. history, clean.
The Securities and Exchange Commission (SEC) officially dropped its case against the exchange and its founder, Changpeng Zhao, bringing a messy, drawn-out legal fight to a quiet end. On paper, it's a massive win for Binance. But zoom out a bit, and the picture gets more complicated.
For the industry, this is a relief. A big one. But it's also a reminder that just because the storm is passing doesn't mean the skies are clear.
Let's rewind.
Back in June 2023, the SEC came down hard on Binance, accusing the platform of operating illegally, commingling customer funds, and basically playing fast and loose with U.S. securities laws. It wasn't a great look, especially after Binance's global entity admitted to anti-money laundering violations and paid a jaw-dropping $4.3 billion fine. Zhao even got a four-month sentence.
So yeah, this week's court filing? Big deal. The SEC dropped the case. Binance.US immediately posted that this proves what they've always said: they didn't break U.S. securities laws.Now they're talking growth, trust, and 'getting back to business.' But here's the thing — getting let off the hook doesn't erase the past two years. The lawsuits, the reputational hits, the lost partnerships, those scars don't just vanish overnight.
Well, a lot, actually.
Gensler is out. The SEC now has a new crypto task force, a new chair (Paul Atkins), and a new approach, one that's less about 'regulation by enforcement' and more about creating an actual rulebook for crypto. That's a huge shift. And yes, it's coming under Trump's administration.
Love him or hate him, Trump has been good for crypto prices. Bitcoin has shot up more than 50% since his win. Vice President JD Vance is endorsing Bitcoin at conferences. And the shift is real—regulators seem more willing to work with the industry than against it.
But let's not kid ourselves. Just because the SEC backed off this time doesn't mean everything's fixed. Gensler's crackdown did real damage. Builders fled. Banks shut their doors. Token listings dried up. And trust? Still shaky.
Here's where things get a little murky.
Reports surfaced earlier this year that Trump's family members were exploring investing in Binance.US, the U.S. arm of Binance. There were even whispers that Zhao was seeking a pardon. He later confirmed it.
If crypto's fate in the U.S. depends on who's in office, we're not building a stable future. We're just playing a different kind of game.
Regulation has to be bigger than politics. Otherwise, the industry's just one election away from getting back to the square one.That said, this is a massive opportunity. The SEC stepping back gives the U.S. crypto industry room to breathe. Room to build. Room to finally show that it can grow responsibly, without regulators breathing down its neck.
Binance.US gets a second chance. So does the rest of the industry. But this time, the burden's on crypto to show it can play it straight: protect users, follow rules, and actually earn back the trust it lost.
Because yeah, beating the SEC is a big deal. But it's not the end of the story, it's just the end of the first chapter.
And if crypto really wants to win in America, this is where the hard part begins.Binance walks free but crypto's future still hangs on politics first appeared on TheStreet on May 30, 2025
This story was originally reported by TheStreet on May 30, 2025, where it first appeared.
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