SEC Steps Back From Binance, Zhao Trolls Gensler With Viral Post

The U.S. Securities and Exchange Commission has officially dropped its lawsuit against the cryptocurrency exchange Binance. This move ends the high-profile legal battle that began under the leadership of former SEC Chairman Gary Gensler. Following the announcement, former Binance CEO Changpeng Zhao took to platform X to mock Gensler. He added a clown nose to an image of the former SEC director to make people believe that "cryptocurrency is still alive." Many online users believe that Zhao intentionally mocked the strict management strategies that Gensler proposed for the SEC. They have been criticized for suing large businesses without providing them with specific rules beforehand. Gensler's main focus on enforcement has been criticized by various groups in the cryptocurrency market. Zhao previously pointed out that focusing on large companies overlooks the fact that smaller, less obvious actors are also responsible for questionable activities in the cryptocurrency world. The Industry Responds To The SEC's Strategic Changes The currently dismissed lawsuit is one of the most prominent legal actions that the SEC has pursued against a cryptocurrency exchange. Binance has faced allegations related to unregistered securities and business operations, although the lawsuit did not gain lasting attention. Immediately after Zhao's viral post, the digital asset industry was abuzz with discussion. Binance supporters viewed this meme as an iconic victory and a message to regulators about the resilience of the cryptocurrency sector. Industry observers believe that the SEC's decision may reflect a changing attitude towards cryptocurrency regulation in the United States. While there is no clear reason for the rejection, this is a rare shift in the agency's stance following a period of active litigation. According to critics, the SEC has used this case to threaten the cryptocurrency industry rather than collaborate. The swift conclusion of the Binance case has left people questioning the future of cryptocurrency oversight in the United States. When the SEC withdrew from the lawsuit against Binance, Zhao's reaction highlighted the growing tension between regulators and industry leaders. Since his post went viral, this controversy has become a major focal point of the cryptocurrency industry in the United States.