Binance.US Taps Former New York Fed Compliance Chief for Board Role

Months after Changpeng Zhao, the founder and ex-CEO of global Binance exchange, resigned as chairman following multibillion-dollar regulatory settlements over money laundering and sanctions violation claims (affecting Binance but not Binance.US), Grant, the present head of regulatory affairs at JST Digital, assumes this new role.

Grant made a remark that the digital asset sector in America is experiencing a significant turning point, and he’s thrilled to contribute to the leadership of one of the nation’s prominent and client-focused cryptocurrency platforms.

For over 30 years, Grant held positions focused on law and compliance with various U.S. government organizations. The majority of this experience was gained while working at the New York Federal Reserve. (Binance.US press release)

Currently, The SEC is in legal disputes with The Exchange over its requirement for U.S.-based crypto trading platforms like Binance.US to follow national securities exchange regulations. Last year, the SEC claimed that these platforms, including Coinbase and Kraken among others, were functioning without proper registration as brokers, exchanges, or clearinghouses. A federal judge found Coinbase’s non-compliance with these rules to be a valid concern in a previous case.

Norman Reed, currently the CEO of Binance.US and previously its legal advisor, shared with CoinDesk his sense of satisfaction regarding the exchange’s current status with the Securities and Exchange Commission (SEC).

In his opinion, they failed to give precise instructions to the financial markets regarding which digital assets fell under the category of securities. Instead, they referenced an old court case from 1946, the Howey case, which involved an orange grove and had significantly different facts and legal contexts.

From 1993 to 2000, Reed worked as a senior enforcement attorney at the Federal Reserve in New York. After that, he spent the next six years (from approximately 2001 to 2006) serving as a special counsel with the Securities and Exchange Commission (SEC). Later, for eight years, starting around 2007, he was employed at the Depository Trust & Clearing Corporation.

Chris Bloddett, Binance.US COO, acknowledged that our trading volumes were greatly affected after the SEC’s case and during our shift to a crypto-only exchange. However, he mentioned that the last two quarters have shown impressive rebound in volume, revenue, and user engagement on our platform. This improvement can be attributed, in part, to the broader market recovery.

The company has also begun to hire back some employees who were laid off last year, Blodgett said.