The U.S. Securities and Exchange Commission (SEC) recently dismissed its 2023 lawsuit against Binance and its founder, Changpeng Zhao (CZ). Moments after the Binance official X account announced the lawsuit dismissal, CZ publicly mocked former SEC Chairman Gary Gensler.
CZ Trolls Gensler
CZ took to X (formerly Twitter) to publicly ridicule Gary Gensler. He shared an AI-generated image of Gensler wearing a red clown nose. The words “Crypto is still here” accompanied the image, highlighting the newfound hope under the current regulatory climate.
Crypto is still here. pic.twitter.com/W3WC1HQBpb
— CZ 🔶 BNB (@cz_binance) May 29, 2025
For context, Gensler’s tenure aimed at bringing crypto firms under existing securities laws. Under his leadership, the SEC also filed high-profile suits against Ripple and Coinbase, claiming that crypto tokens are securities and should be regulated by the SEC. Supporters of Gensler’s approach argue that it’s necessary to protect retail investors amid industry growth.
In June 2023, Gensler led the agency in filing a complaint in a U.S. District Court, accusing Binance and CZ. Among other accusations, the SEC claimed that the platform was operating as an unregistered securities exchange and misrepresenting its trading practices. Interestingly, Binance remained defiant, describing the regulatory process as excessive.
Fast-forward to May 29, 2025, and the SEC filed a motion to dismiss its lawsuit against Binance and CZ with prejudice, barring the agency from refiling the case. The decision contrasts with the stance instigated by Gensler, resulting in a taunting tweet by the exchange’s co-founder.
SEC Shifts from Aggressive Stance
Newly confirmed SEC Chair Paul Atkins, who took office in early 2025, has emphasized the need for clear regulatory frameworks for the crypto industry. His approach focuses on collaboration with crypto firms rather than relying solely on litigation.
For instance, the SEC has withdrawn a lawsuit against Kraken and Helium creator, Nova Labs. It also eased scrutiny of PayPal’s PYUSD stablecoin. Additionally, the agency has established new working groups, aiming to foster an environment where compliant innovation can thrive without legal ambiguity.
Meanwhile, after stepping down as SEC Chair in January 2025, Gensler returned to academia. He now works at the Massachusetts Institute of Technology (MIT) as a Professor of Practice focusing on artificial intelligence, finance, financial technology, and public policy. Commenting on the move, Tyler Winklevoss said Gemini will no longer hire graduates from the school.
