Binance executives held talks with representatives of the U.S. Department of the Treasury to reduce the regulatory burden on the company and to explore potential collaboration with World Liberty Financial (WLF), a cryptocurrency project backed by allies of Donald Trump.
CEO Richard Teng and General Counsel Eleanor Hughes proposed either ending or significantly scaling back the mandate of an external monitor who was appointed to oversee Binance’s compliance with anti-money laundering (AML) regulations. The monitor was assigned as part of a settlement agreement following a years-long investigation into Binance.
At the same time, Binance is negotiating a possible listing of a new dollar-pegged stablecoin issued by World Liberty Financial. The project previously launched the USD1 stablecoin, reportedly backed by U.S. dollars. According to its announcement, the initiative aims to merge the security of traditional finance with the advantages of DeFi.
Parallel Talks and Trump Ties
Earlier this year, the Wall Street Journal reported that former Binance CEO Changpeng Zhao, after pleading guilty to violating U.S. law, sought a presidential pardon. According to sources cited by the outlet, his efforts coincided with discussions of potential business deals between Binance and the Trump family. One proposal reportedly included the possibility of transferring a stake in Binance’s U.S. division.
Zhao stepped down as CEO in November 2023 after reaching a settlement with the U.S. Department of Justice and pleading guilty to AML violations. The total settlement amount was $4.3 billion.
SEC Case Against Binance Paused
Amid these developments, the U.S. Securities and Exchange Commission (SEC) and Binance agreed to extend a pause in their ongoing lawsuit for another 60 days. According to the SEC, negotiations between the parties are progressing productively. The new deadline for the pause is set for mid-June 2025.
The SEC initially filed suit against Binance in 2023, accusing the exchange of operating without proper registration and committing other violations. The outcome of the case may now depend on the direction taken by the SEC’s revamped crypto working group.
New Regulatory Model Sandbox and Unified Standards
Acting SEC Chairman Mark Uyeda recently proposed a “Sandbox rule” — a temporary regulatory framework allowing crypto companies to launch products without full compliance with existing laws. This would enable the SEC to shape new rules specific to the industry while avoiding development roadblocks.
Uyeda also emphasized the need for unified federal regulation of the crypto market, replacing the current patchwork of state-by-state rules. Industry experts support the initiative, noting the necessity for tailored standards for blockchain companies — particularly in areas like high-frequency trading, transparency, and market manipulation.
New SEC Chairman Paul Atkins is expected to continue the push for crypto regulatory reform.
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