The post Binance Seeks Less Oversight While Battling Legal Issues and Ties to Trump: WSJ appeared first on Coinpedia Fintech News
Binance executives recently met with the US Treasury officials in order to discuss reducing government oversight and a potential collaboration with Trump-backed crypto company World Liberty Financial as per a report from Wall Street Journal.
Executives Ask To Ease Oversight
The executives reportedly asked to ease the government oversight and requested the removal of a watchdog monitoring their compliance with anti-money laundering laws. Binance CEO Richard Teng and Chief Legal Officer Eleanor Hughes asked to either end or scale back its scope. The exchange is also in talks over listing a new dollar-pegged cryptocurrency from WLF.
Last month, the Wall Street Journal reported that former Binance CEO Changpeng Zhao had been quietly seeking a presidential pardon from the administration following his 2023 guilty plea for violating U.S. anti-money laundering laws. His efforts reportedly came as Binance was in talks with the Trump family about potential business deals, including offering a stake in the exchange’s U.S. arm.
Zhao resigned as Binance’s CEO in November 2023 after he pleaded guilty to violating the US anti-money laundering laws in a $4.3 billion settlement which resolved a years-long investigation.
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 the sides more time to negotiate and settle the issues.
Sandbox Rule For Crypto Firms
Besides, acting SEC Chair Mark Uyeda recently proposed a ‘Sandbox rule’ for crypto firms which would give them flexibility to innovate without fully complying with the existing laws, while more clearer rules are framed.
He also emphasized the need for a single federal framework instead of different state rules. Experts have now called for new rules tailored to blockchain and crypto focusing on issues like high-speed trading, transparency, and market manipulation. The incoming SEC Chair, Paul Atkins, is expected to continue refining the agency’s approach to digital assets.
