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The Trump administration abandoned a lawsuit against crypto giant Binance and its founder Changpeng Zhao, signaling a friendlier approach to the cryptocurrency sector compared to its predecessor.
In a four-page court filing on Thursday, the Securities and Exchange Commission said it believed it was “appropriate” to dismiss the lawsuit “in the exercise of its discretion and as a policy matter.”
In mid-2023, the Biden administration filed a lawsuit against Binance accusing it of mishandling customer funds and misleading U.S. regulators. It was part of an extensive crackdown on digital assets under Biden that sought to penalize the volatile, scam-ridden industry and rein in its excesses.
But the crypto industry is no longer being treated as a financial outcast with President Donald Trump welcoming the deep-pocketed sector with open arms. He once assailed digital assets but reversed course and proclaimed himself to be the “crypto president.”
Vice President J.D. Vance headlined a Bitcoin conference in Las Vegas this Wednesday and promoted the administration’s close relationships in the crypto sector. “There’s a new sheriff in town… With President Trump, crypto finally has a champion and an ally in the White House.”
Trump held a dinner for memecoin investors on May 22 to encourage sales of his $TRUMP cryptocurrency. The controversial event sparked protests and criticism about profiting off of the presidency. The White House has rejected those attacks and said Trump’s assets are in a blind trust managed by his sons.
“There is a lot of sense in crypto. A lot of common sense in crypto,” Trump said in brief remarks at the dinner, per The New York Times. “And we’re honored to be working on helping everybody here.”
The price of Bitcoin hit a record high this month, but the peak was brief and fell again.