Binance Coin (BNB) is on the move following the recent settlement between Binance and the CFTC.
On Monday December 18, the U.S. District Court for the Northern District of Illinois officially approved the settlement between the crypto exchange Binance and the U.S. Commodity Futures Trading Commission (CFTC).
Under the terms of the settlement, Binance will pay $2.7 billion to the CFTC. Binance’s former CEO, Changpeng Zhao (CZ), will pay $150 million to the agency.
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BNB Soars 7%!
Binance is ordered to make certain changes in its internal operation and oversight, aiming to improve transparency and prevent future legal issues. The exchange is required to implement a structured system of internal governance.
Specifically, it must establish a Board of Directors, a governing body with members who are not directly involved in managing Binance’s day-to-day operations.
The goal is to bring objectivity and to help ensure decisions are in the best interests of the company and its users. There will be an addition of a Compliance Committee and Audit Committee in order to ensure Binance’s regulatory compliance and accountability.
The CFTC had previously launched an investigation into Binance, alleging the exchange violated the anti-money laundering and sanction laws. On November 21, Binance and CZ reportedly entered a plea deal with the U.S. officials, including the CFTC and the Department of Justice (DOJ).
In a statement following the plea deal, CZ admitted that Binance failed to comply with the relevant regulations, but emphasized that the entity did not misuse customers’ funds. Binance Coin (BNB) reacted negatively when the settlement news surfaced. The coin dropped from $267 to $226 shortly after the settlement announcement.
As the dust settles, the price of BNB reflects optimism. In the last 24 hours, BNB rallied from around $236 to $252, up to 7.20%. With this surge, the cryptocurrency ended its gloomy month and seemingly kept up with the recent rally of the entire market.
Bitcoin regained its $43,000 mark earlier today after the bloody weekend. Apart from BNB, other altcoins like Injective (up 26.38%) and Sei (up a jaw-dropping 50%) witnessed impressive rallies.
The SEC Isn’t Done
There have been ongoing conversations surrounding the market trading volume, which Binance takes the lead. When the settlement news broke out, some experts suggested that other exchanges might take over Binance’s position. The warning came true, but didn’t last long.
Data analysis from Kaiko showed that the exchange suffered a 60% decline in daily trading volume, from around $20-$30 billion to $10 billion. However, the latest data from CoinMarketCap indicated a resurgence, with trading volume surpassing $13 billion.
In comparison to Binance, Coinbase’s trading volume in the last 24 hours stood at over $2 billion, followed by Kraken, KuCoin, Bybit, and OKX, to name a few. That said, Binance’s reputation remains intact despite the ongoing challenges with regulations.
While the recent settlement with the U.S. officials and Binance’s focus on compliance are positive developments, the ultimate outcome of the SEC lawsuit and the broader regulatory landscape for crypto exchanges in the U.S. remain uncertain.
Binance is still facing legal proceedings with the securities agency. In 2023, the SEC launched a lawsuit against Binance for allegedly offering unregistered securities, including the BNB token, lending products, and staking services. There will be more coming from Binance and global regulators.
The regulators later targeted other exchanges like Coinbase and Kraken with similar concerns, highlighting a broader crackdown on potential securities violations within the crypto industry. In a recent public statement, Coinbase’s Chief Legal Officer, Paul Grewal expressed the firm’s growing frustration with the lack of progress on crypto regulation.
As a next step, Coinbase plans to appeal to the Third Circuit Court of Appeals, seeking the court’s intervention to compel the SEC to finally address the urgent need for clear crypto regulations.
The post Binance Settles With CFTC, BNB Responds Positively appeared first on Blockonomi.