Binance is reportedly in discussions with the US Department of Justice (DOJ) to eliminate a crucial oversight provision from its 2023 settlement agreement — a modification that could alleviate regulatory and compliance burdens on the cryptocurrency exchange if approved.
According to Bloomberg, which cited sources familiar with the negotiations, the DOJ is considering the removal of the requirement for Binance to be supervised by an independent compliance monitor.
This monitor was mandated for a three-year term as part of a $4.3 billion settlement Binance reached with the DOJ in 2023, following allegations of several compliance violations, including inadequate anti-money laundering measures.
The 2023 DOJ settlement pertains to Binance’s global operations, excluding its US affiliate, Binance.US, which functions as a distinct legal entity.
Bloomberg also indicates that this possible shift aligns with what seems to be a growing DOJ trend toward diminishing or ending external supervision in particular instances, though the extent of this trend remains uncertain. Companies have frequently criticized the reliance on external monitors, labeling them as expensive and disruptive.
While the DOJ review remains unconfirmed, Bloomberg noted that at least three other companies have successfully evaded prolonged oversight by compliance monitors: mining giant Glencore Plc, along with UK-based NatWest Group Plc and Australia’s Austal Ltd., active in banking and naval shipbuilding, respectively.
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Crypto firms seek regulatory clarity under pro-industry Trump administration
Binance’s reported initiative to lighten compliance requirements with the DOJ coincides with the crypto sector capitalizing on a wave of clearer, more industry-favorable regulations during US President Donald Trump’s administration.
The administration has introduced several significant initiatives, including the enactment of the GENIUS stablecoin act and the House of Representatives’ approval of both a market-structure bill and anti-CBDC legislation.
Regulators have begun clarifying their stance on digital assets. Securities and Exchange Commission Chair Paul Atkins recently announced the cessation of “regulation through enforcement,” committing to clearer guidance on matters like tokenization. The SEC has also elucidated its position on liquid staking tokens, determining that they primarily do not fall under securities regulations.
Both the SEC and the Commodity Futures Trading Commission (CFTC) are progressing to align with the administration’s broader digital-economy agenda. This includes a recent CFTC announcement establishing a pathway for foreign crypto exchanges to accommodate selected US clients under the Foreign Board of Trade framework.
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