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- Former SEC and Federal Reserve Bank of New York, Norman Reed, is set to become the CEO of Binance US on an interim basis.
- Some experts believe the appointment is somewhat strategic amid all the legal challenges Binance faces.
Norman Reed Becomes Interim CEO for Binance US
Norman Reed, who formerly served at the Federal Reserve Bank of New York and the U.S. SEC, is set to become the new CEO of Binance US—the crypto exchange’s affiliate.
The appointment is on an interim basis and follows the exit of Binance.US CEO Brian Shroder. Brian is taking a break amidst Binance layoffs, affecting 33% of the workforce.
Zhao admits that under the leadership of Brian Shroder, Binance US was able to raise capital and improve its products and service offerings.
Moreover, he solidified internal processes, enabling Binance to gain significant market share, which helped Binance become resilient.
As his tasks come to fruition, Binance US needs someone who can cater to the natural evolution of a rapidly growing ecosystem.
“The crypto market is in a different place now than it was two years ago, with a rapidly evolving and increasingly hostile regulatory environment. Norman Reed – former SEC, New York Fed, Ripple, and DTCC executive – is the right person to lead @BinanceUS in this market.”Changpeng Zhao, Binance founder and CEO, tweeted on X (formerly Twitter)
Reed’s Appointment Is a Strategic Move Amid SEC Battle
Some experts believe that Reed’s appointment is a survival strategy for Binance rather than a growth tactic.
Reacting to the appointment, XRP lawyer John Deaton points out that Norman Reed was a former Ripple general counsel.
He said that Reed’s signature is on the 2015 settlement agreement between the DOJ (Department of Justice) and FinCEN (Financial Crimes Enforcement Network) about Ripple.
Deaton admits that Katie Haun also signed the agreement on behalf of the DOJ. He went on to say that the SEC and the U.S. government knew more about Ripple than any other firm involved in crypto.
He ended his tweet by saying that Reed not jumping ship and staying with Binance amid all its challenges could be a positive sign in a tough situation.
Another tweeter didn’t agree with the sentiment of a general legal counsel becoming a CEO. It doesn’t sound like a growth play, and Deaton agreed with that tweet.
He clarifies that since the lawsuits involve DOJ, CFTC, and SEC, Binance US may not have a bright future.
Binance’s Legal Battles with Authorities
The crypto exchange company has continuous regulatory scrutiny and legal battles from various authorities, including the U.S. Securities Exchange and Commission, plus the Commodity Futures Trading Commission.
Binance has been accused of violating securities regulations and mismanagement of customer funds.
It is also accused of misleading investors and regulators, plus breaking securities rules. Zhao and the crypto exchange have denied the allegations.
Soon after the U.S. SEC legal notice, Binance.US users couldn’t deposit and withdraw funds.
This was a result of various banking partners cutting ties with the company. Binance US has since resorted to another method that users can convert dollars into crypto.
Will the new appointment align with the natural evolution of the rapidly growing ecosystem? Time will tell; let’s wait and see how things unfold.