It’s a shame that Gary Gensler declined Binance’s offer a few years before he took over as head of the SEC. If the opposite had happened, the most popular crypto exchange in the world would have avoided the bad patch it is going through right now. Because it’s not just US regulators who are after Binance these days. Local politicians are also beginning to worry about the company’s regulatory compliance.
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Binance missed its chance with Gary Gensler
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Binance and Binance.US records on regulators table
Binance missed its chance with Gary Gensler
After the collapse of FTX and Terra last year, the Securities and Exchange Commission decided to attack crypto exchanges at their Achilles’ heel: the regulatory conformity. Binance, whose hegemony in the cryptosphere is currently undeniable, has just received a letter from three US senators in the person of E. Warren, C. Van Hollen and R. Marshall. Said letter invites CZ to provide ample details regarding the balance sheets and internal procedures of his company.
Binance would be in trouble right now. Yesterday, March 5, the wall street journal revealed the existence of a plan that would have allowed Binance to avoid this kind of situation. And that plan has a name: Gary Gensler.
In fact, when this former CFTC chairman was teaching at the Massachusetts Institute of Technology between 2018 and 2019, Changpeng Zhao’s team reportedly approached him to advise Binance.
” I note that although Gensler declined the adviser position, he was generous in sharing licensing strategies said Harry Zhou, co-founder of Koi Trading, a Binance-backed company.
According Cointelegrapha second meeting took place in Tokio between CZ and Gary Gensler in 2019. Unfortunately, this operation of seduction failed. The ex-Goldman Sachs Boy preferred to join the SEC after Joe Biden was elected as POTUS.
Binance and Binance.US records on regulators table
The WSJ report also highlighted the close relationship between Binance.com (based in China and Japan) and Binance.US (located in San Francisco).
But a Binance spokesperson clarified that the technical infrastructure of the American branch simply benefited from support from the parent company to comply with American regulations.
Patrick Hillmann, Chief Strategy Officer of Binance also clarified that the issue of compliance with regulators seems already settled. Provided that his speech can save the crypto exchange from future penalties and fines.
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