Binance Plots US Comeback After CZ Pardon
Binance, the world’s largest crypto exchange, is plotting a US market comeback after co-founder Changpeng Zhao’s (CZ) pardon.
According to a Dec. 17 Bloomberg report that cited sources familiar with the matter, the exchange is planning to reboot its American affiliate, Binance.US.
To do this, the exchange might look at potentially reducing CZ’s majority stake in the company, which the people said has been a major hurdle for the platform in expanding to key states.
CZ Wants To Focus On The US Market After A Tearful Exit
Binance, through its American affiliate, has lost substantial ground in the US markets since authorities charged the exchange and CZ in 2023 for violating the Bank Secrecy Act by failing to implement proper KYC and AML controls.
Binance was ordered to pay a multi-billion-dollar fine, while CZ agreed to step down as the exchange’s CEO and served a four-month prison sentence as part of a plea deal.
“When I stepped down as Binance CEO I actually cried,” the Binance co-founder said at the Binance Blockchain Week at the start of the month. “It took me a little bit to get over it.”
As part of the deal, CZ is also barred from formal or informal involvement in the company’s operations.
At the event, CZ recalled that the exchange had a 35% share of the US market, which has now dropped close to zero.
Binance.US 24-hour trade volume (Source: CoinMarketCap)
Several US states had revoked their licenses for Binance and others, like New York, never granted the platform a license in the first place.
Earlier this year, CZ was pardoned by President Donald Trump, who said the Binance co-founder was the victim of a Biden administration “witch hunt” and deliberate attack aimed at the crypto space.
It remains unclear whether the pardon would remove some of the restrictions that were imposed on the Binance co-founder and the exchange.
During Binance Blockchain Week, however, CZ said that it is his “full intention to help make America the capital of crypto,” aligning with Trump’s vision. He went on to call the US “an emerging land” for Binance.
CZ Actively Appearing At Events Even Though He Is ‘Retired’
While CZ has been barred from being involved in Binance’s operations, some wonder if he is still influencing the company’s direction.
That speculation intensified after Binance recently announced that Yi He, another one of the exchange’s co-founders who is also CZ’s domestic partner and the mother of three of his children, was promoted to co-CEO alongside Richard Teng.
During her appearance at the Binance Blockchain Week, she said that CZ had “retired,” even though he was front and center of much of the talk at the conference.
Binance Might Reduce CZ’s Ownership Stake, But Will Need To Act Fast
People cited by Bloomberg said that Binance was considering reducing CZ’s ownership stake. If the exchange were to buy up some or all of his equity, it could have the freedom to install new leadership, pursue business strategies to boost growth, and lean on its political relationships in Washington, the people added.
If Binance is indeed pushing to re-enter the US market, it will need to act fast. The current crypto-friendly regulatory climate in the US under Trump could disappear if Democrats were to gain more power in the midterm elections in 2026, or if they retake the White House later on.
Some have already warned that the tide may be turning. Washington crypto lobbyists had initially predicted that a key piece of legislation, the crypto market structure bill, would pass by the end of the year, but are now unsure it will get signed into law at all.
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