- Martin Grant joins Binance.US board after 17 years at the Federal Reserve Bank of New York.
- Appointment follows recent Binance global settlement on allegations of money laundering.
- Binance.US continues to face legal challenges with the SEC over crypto trading regulations.
Binance.US, a major player in the cryptocurrency exchange market, announced on Tuesday the addition of Martin Grant to its board of directors. Grant, who previously served as the chief compliance and ethics officer at the Federal Reserve Bank of New York for 17 years, is taking on a new role amidst ongoing regulatory challenges faced by the company.
Navigating New Leadership and Regulatory Waters
This significant appointment comes several months after Changpeng Zhao, the original founder and CEO of the global Binance exchange, resigned from his position as chair of the board. His departure occurred in the wake of a substantial settlement that the global exchange reached with U.S. regulators concerning serious allegations of money laundering and violations of sanctions. It is important to note, however, that Binance.US was not involved in these settlements.
Martin Grant, now the global head of regulatory affairs at JST Digital, expressed his enthusiasm about his new role, highlighting the critical juncture at which the American digital asset industry finds itself. His decades of experience in compliance and legal roles, predominantly acquired at the New York Fed, position him as a strategic choice for guiding Binance.US through its next phase of growth and regulatory navigation.
Current Challenges and Outlook
The exchange is currently embroiled in a legal battle with the U.S. Securities and Exchange Commission (SEC), which has intensified its scrutiny over American crypto trading platforms. The SEC has accused Binance.US, among others, of operating as unregistered entities. This ongoing dispute follows a court’s acknowledgment of the plausibility of the SEC’s allegations in a similar case involving Coinbase.
Despite these challenges, Norman Reed, CEO of Binance.US and former general counsel of the exchange, remains optimistic. Reed, who has an extensive background in enforcement and regulatory affairs, criticized the SEC for its vague directives concerning digital assets and their classification as securities. He referenced the historical Howey case to illustrate the outdated basis for current regulatory approaches.
Amid these regulatory confrontations, Binance.US has experienced a dip in trading volumes, attributed partly to the SEC’s legal actions. However, Chris Blodgett, the COO of Binance.US, reported a robust recovery in the last two quarters, with increases in volume, revenue, and user engagement, spurred by a broader market upswing.
