Binance founder and CEO Changpeng “CZ” Zhao is stepping down from his role at the crypto company and pleading guilty against charges put forth by the U.S. Department of Justice. Binance will also pay $4.3 billion as part of the settlement. Richard Teng, previously Binance’s Global Head of Regional Markets, will step in as CEO.
But despite the unexpected shake-up, some industry figures don’t see this news as being necessarily bad for crypto. Some, like Coinbase Chief Legal Officer Paul Grewal, see Binance’s settlement as a chance to reiterate a call for proactive regulation and clear laws for crypto.
Others were less optimistic. Twitter/X employee Chris Bakke alleged that Binance is just one of many crypto companies “run by frauds,” also naming collapsed firms like FTX, BlockFi, Terra, Celsius, Voyager, and others in response to the Binance news.
But many crypto enthusiasts believe Binance’s shakeup is a net positive for the industry. Coinbase CEO Brian Armstrong and ShapeShift CEO Erik Voorhees both shared a similar sentiment, reiterating that the U.S.-based exchange will continue to remain in the country. Crypto lawyer Carlo D’Angelo suggested that CZ’s departure from Binance actually benefits the broader crypto industry. However, Deaton Law Managing Partner John Deaton suggested that CZ didn’t have much of a choice but to plead guilty.
Messari Crypto founder and CEO Ryan Selkis also weighed in on the Binance news, calling it a “derisking” for the exchange by settling with the DOJ, and Galaxy Digital CEO Mike Novogratz argued that Binance reaching a settlement with regulators “would be super bullish.”
While many crypto executives and attorneys don’t believe Binance’s settlement is bad for crypto, it’s currently unclear how Binance’s BNB token will fare long-term—and how other U.S. regulatory action against exchanges like Kraken will play out.
Binance’s settlement with the U.S. Department of Justice is being seen as a net positive for the crypto industry. Despite the unexpected shake-up, industry figures do not view the news as bad for crypto. They believe the settlement could be a catalyst for clear regulations and laws in the U.S., and encourage innovation and consumer security. However, the long-term effects of the settlement on the BNB token and other U.S. exchanges remain to be seen. #Crypto #Binance #USRegulation #BNBToken #Kraken #Innovation
You can read more about this topic here: Decrypt: ‘Crypto Isn’t Going Anywhere’: Industry Leaders Weigh In on Binance Crackdown