The Trump administration continues to show its supportive stance towards the cryptocurrency world as the president and his family benefit from the sector. The United States Securities and Exchange Commission (SEC) announced on Thursday to a Washington court that it is withdrawing the lawsuit filed against the cryptocurrency platform during Joe Biden's presidency.

In a four-page document, the SEC requests the dismissal of a case where it had gathered substantial evidence of Binance's misconduct. U.S. regulators accused Binance, the largest cryptocurrency market globally, of misappropriating client assets at will and mixing them without oversight, breaching the law. The complaint suggested that billions of dollars were redirected to a subsidiary named Merit Peak Limited, controlled by Binance's founder and then-chief, Changpeng Zhao, who was sentenced to four months in jail in a separate criminal case for allowing money laundering on the platform.

In the criminal case, Binance agreed to pay a record fine of $4.368 billion for violating money laundering laws and securities market regulations. Additionally, Zhao pleaded guilty to the offense, leading to his sentencing, and agreed to step down as Binance's chief executive, while retaining control over the company's shares.

The SEC's lawsuit was a different matter, presented alongside other U.S. regulators' charges. Among the 13 accusations from the securities supervisor against Binance was the allegation that the firm failed to prevent targeting U.S. investors, bypassing regulations. The SEC argued that although Zhao and Binance publicly claimed that U.S. customers were restricted from transacting on Binance.com, they secretly undermined their own controls to allow major clients to continue trading.

The SEC asserted that Binance earned $11.6 billion from transaction fees from U.S. clients without proper registration. Supervisors stated Zhao was accountable for all strategic decisions at Binance, including devising a secret scheme to instruct VIP clients in the U.S. to evade compliance checks. He also urged his associates to use apps with auto-deleting messages. "Warn them to ensure they don't connect from a U.S. IP address. Leave nothing in writing. (...) Do you have Signal?" Zhao mentioned in a message.

After the collapse of the FTX market, U.S. supervisors tightened their grip on the sector, initiating numerous regulatory and judicial actions against cryptocurrency firms. Trump's return to the White House marked a significant policy shift. The Republican appointed Paul Atkins, a crypto advocate, as SEC chairman, replacing Gary Gensler, who was stringent with the sector. He also named David Sacks as the "crypto czar."

The SEC withdrew its lawsuit against Coinbase in February. That same month, it sought to suspend the case against Binance. Now, with little explanation, it requests the case be archived. "In exercising its discretion and as a matter of its policy, the Commission believes that the dismissal of this case is appropriate," is all it states in its document.