Trump administration backs off Binance crypto lawsuit

In a major policy shift, the Trump administration has dropped the federal lawsuit against crypto exchange Binance and its founder, Changpeng Zhao.

The Securities and Exchange Commission (SEC) filed a four-page motion Thursday to dismiss the case, calling it “appropriate” from both a discretionary and policy standpoint.

This move marks a dramatic reversal from the Biden-era crackdown on the crypto industry.

From crackdown to crypto cooperation

The original lawsuit, filed in 2023 under President Biden, accused Binance of misusing customer funds and deceiving regulators.

Biden’s team was aggressive in pursuing penalties against volatile and unregulated crypto platforms. The industry was painted as a financial wild west filled with fraud.

Now, with President Trump in office, the tone toward crypto has changed significantly. The administration is working closely with the sector instead of against it.

Trump embraces crypto, brands himself a supporter

President Trump now refers to himself as the “crypto president.” This is a stark pivot from his previous criticism of digital assets.

Trump has embraced the deep-pocketed industry and welcomed its players into his political orbit. Most recently, he hosted a dinner with memecoin investors, encouraging sales of his own $TRUMP token.

Despite criticism over ethics and profiteering, the White House maintains Trump’s assets are held in a blind trust.

Vice President Vance promotes crypto at Bitcoin event

Vice President J.D. Vance amplified the administration’s pro-crypto stance this week, speaking at a major Bitcoin conference in Las Vegas.

“There’s a new sheriff in town,” Vance said. “With President Trump, crypto finally has a champion and an ally in the White House.”

His remarks reinforced the perception that the Trump administration views crypto as a legitimate and essential part of the future economy.

Crypto industry welcomes political support

The dismissal of the Binance lawsuit was seen as a green light for further crypto integration in U.S. finance and politics.

While critics fear regulatory capture, many in the crypto space are celebrating the shift as overdue recognition of the sector’s importance.

Trump’s open-door policy is already attracting more attention—and money—from blockchain developers, exchanges, and investors.

Bitcoin price volatility continues despite good news

Despite growing political support, crypto prices remain volatile. Bitcoin hit a new record high earlier this month but quickly retreated.

Market analysts suggest that political optimism may buoy investor sentiment but won’t override macroeconomic pressures or speculative risks.

Still, the policy shift under Trump has injected a new level of confidence into the crypto sector.