In another signal that the United States has put regulation by enforcement in the rearview mirror, on May 29, the U.S. Securities and Exchange Commission voluntarily dismissed its lawsuit against Binance, one of the world’s largest cryptocurrency exchanges. The SEC indicated that the dismissal of the Binance case with prejudice is appropriate “in the exercise of its discretion and as a policy matter”— citing the SEC’s ongoing efforts to change the way it regulates the digital asset industry.

The Binance development follows a June 2023 criminal resolution between the company and the U.S. Department of Justice, which resulted in a multi-billion-dollar settlement and compliance commitments. The SEC’s dismissal of its Binance suit underscores that the agency has drastically recalibrated its enforcement strategy in the digital asset space.