Interim CEO Norman Reed highlights Binance.US’ resilience amid SEC scrutiny CEO sees return to US as premature as Binance Global focuses on international growth
Binance.US has announced plans to reintroduce USD services in early 2025. The move marks a significant operational shift after a long period of restricted banking access and comes amid growing optimism about potential changes to U.S. crypto policies. The announcement marks a significant milestone for the exchange after a turbulent year.
In a recent announcement on the Binance.US blog, plans were shared to relaunch USD services in January. Interim CEO Norman Reed emphasized the importance of this step, stating that fiat services are one of the “most requested and anticipated” features by users.
Reed said the move is a matter of “when, not if,” although he did not give a firm start date.
Binance.US operates under BAM Trading Services as a separate entity from Binance Exchange to comply with US regulations. It has ceased fiat trading as of 2023, a decision that was made following lawsuits filed by the US Securities and Exchange Commission (SEC). These lawsuits and allegations of financial irregularities led to the suspension of dollar deposits and withdrawals. Since then, Binance.US has faced strict regulatory oversight and limited banking access.
Despite this, the platform continues to support over 160 cryptocurrencies and offer staking services for over 20 assets. According to Reed, staking services provide a significant advantage over its competitors in this space.
Reed has largely described the regulatory crackdown as “Operation Choke Point 2.0,” an effort aimed at restricting crypto companies’ access to banking services. The issue came to the fore when Coinbase’s General Counsel Paul Grewal brought up correspondence between the Federal Deposit Insurance Corporation (FDIC) and affiliated banks, suggesting that crypto companies were being deliberately excluded from banking.
Reed expressed full confidence in Binance.US’ compliance record, noting that they survived a 17-month SEC investigation. He noted that the investigation included extensive statements and document requests. “Now that we have survived, our goal is to help crypto thrive and provide freedom of choice to all Americans,” he said.
Looking ahead, Binance.US is working on new partnerships to expand its custody and wallet solutions, as well as re-introduce fiat services. This move could revitalize the exchange’s user base and restore trust among American investors.
However, Binance Global remains cautious about returning to the US market. Binance CEO Richard Teng called such discussions “premature” in an interview with Bloomberg. Teng noted that Binance’s primary goal is global expansion and that it plans to attract institutional investors, sovereign wealth funds, and high-net-worth individuals to the crypto space.
“Whether we will re-enter the US market is an early discussion at this stage,” he said.
These comments come after Binance settled with the Department of Justice (DoJ) over sanctions violations, money laundering, and unlicensed money transmission activities that cost it $4.3 billion. Despite the challenges, Teng reiterated the company’s commitment to compliance, saying, “We believe compliance is the way to go. Regulations are becoming much clearer around the world, so we can invest heavily in compliance. We want to turn full compliance into a competitive advantage.”
However, broad questions remain about the regulatory environment in the US and its impact on crypto firms operating in the country. Political changes in the US, especially following Donald Trump’s victory, could impact the shape of future crypto laws.
Binance.US’s successful reintroduction of USD services has the potential to be a significant litmus test for the viability of crypto platforms in the US regulatory environment. This development could be a significant step in shaping the future of the crypto industry in the US.