Binance Pushes to Cut U.S. Oversight, Considers Listing Trump-Backed Stablecoin: WSJ

Binance executives recently met with U.S. Treasury officials to discuss reducing government oversight and potentially collaborating with the Trump-backed crypto company World Liberty Financial (WLF), according to a report from the Wall Street Journal.

Executives Ask To Ease Oversight

The meeting saw Binance’s CEO Richard Teng and Chief Legal Officer Eleanor Hughes request a reduction in government oversight, specifically asking for the removal of the watchdog monitoring their compliance with anti-money laundering (AML) laws.

They also sought to either end or scale back the scope of this oversight. Additionally, Binance is in talks about listing a new dollar-pegged cryptocurrency from WLF on its platform, signaling potential growth and innovation.

A Controversial Pardon Effort

Last month, the Wall Street Journal reported that former Binance CEO Changpeng Zhao Changpeng Zhao Changpeng Zhao is a well-known Chinese Canadian entrepreneur who is also known to be the founder of Binance, established in 2017 alongside Yi He, It is the biggest cryptocurrency exchange in the world based on trading sector and volume. Before this, CZ served as the Head of Development at Blockchain.info and later worked at OKCoin as the Chief Technology Officer. Under CZ’s leadership, Binance launched an ICO( initial coin offering ) that was able to successfully raise $15 million and rapidly became the largest exchange within a few months. Changpeng has always been an advocate for decentralized finance and blockchain Technology. Changpeng is a top blockchain speaker to is actively initiating contributions in the development of the rapidly growing crypto and blockchain space, where he recently attended the Token2049 Singapore event to share his insights on the tech.   Personal Details:Born: 1977Organization: BinanceLocation: UAEEducation: Changpeng graduated with a BSc. A degree in computer science from McGill University  Experience: CEO of Binance from Jul 2017 to Nov 2023 Founder- Bijie Tech from Sep 2015 to Jul 2017 Head of Development - Blockchain from 2013 to 2014 Partner - Fusion Systems from Nov 2005 to Dec 2013 Head of Trade Book Futures Development- Bloomberg from 2001 to 2005   EntrepreneurInvestorChief Executive Officer had been quietly working to secure a presidential pardon following his 2023 guilty plea for violating U.S. anti-money laundering laws. His efforts came as Binance engaged in talks with the Trump family about possible business deals, including offering a stake in the exchange’s U.S. division.

Zhao stepped down as CEO of Binance in November 2023 after reaching a $4.3 billion settlement in a case related to anti-money laundering violations, bringing an end to a years-long investigation into the company.

SEC-Binance Pause Legal Battle

Recently, the SEC and Binance have agreed to pause their legal battle for another 60 days following their ‘productive talks’. The focus is now on how the SEC’s new crypto task force will impact the case. The SEC filed a lawsuit against Binance in 2023, accusing it of operating without registrations and over other violations. The pause is now extended until mid-June 2025, potentially giving both sides more time to negotiate and settle the issues.

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Sandbox Rule For Crypto Firms

In addition to Binance’s discussions with the Treasury, acting SEC Chair Mark Uyeda recently proposed a “Sandbox rule” for crypto firms. This rule would allow companies to experiment with new ideas without fully complying with current laws, while the government works to create clearer rules for the industry.

Uyeda also called for a unified federal framework for cryptocurrency, rather than a patchwork of state-specific regulations. As the industry continues to grow, experts are urging for new rules that address issues like high-speed trading, market transparency, and the potential for market manipulation.

With Paul Atkins confirmed to become the new SEC Chair, he is expected to continue shaping the agency’s approach to digital assets, offering clearer direction for the future of the crypto market.