Norman Reed remains optimistic about the prospect of a friendlier regulatory landscape under the upcoming Trump administration.
Binance.US interim CEO Norman Reed has openly criticized the US Securities and Exchange Commission (SEC) for branding the crypto exchange a “cauldron of fraud” despite failing to present evidence in court. In a recent interview, Reed stated that the SEC’s allegations and subsequent actions severely disrupted the company’s operations, leading to significant financial losses, layoffs, and a damaged reputation.
Background
The controversy began in June 2023 when the SEC, spurred by the fallout from the FTX collapse, filed a lawsuit against Binance, Binance.US, and their founder Changpeng Zhao (CZ). While Binance later reached a $4.3 billion settlement with US authorities, Binance.US was not a party to the agreement. Instead, it faced its own regulatory hurdles, including frozen banking relationships and the cessation of fiat services.
Reed, who himself previously worked at the SEC enforcing securities laws, believes the regulator’s actions amounted to a targeted attack. Within weeks of the lawsuit, the exchange saw an exodus of customers and billions of dollars in withdrawals. The fallout also prompted institutions and banks to sever ties, crippling Binance.US’s ability to operate as a crypto-to-fiat platform.
Binance.US Charts a Path to Recovery
Despite the setbacks, Reed states that the company is poised for a turnaround. He reiterated his plan to restore USD fiat services in the next few weeks as the company is already in talks with banks and state regulators. The plan marks a major step forward for the exchange, which has operated under stringent restrictions since mid-2023.
Additionally, the interim chief praised the Binance.US team’s resilience. He stated that the company’s survival and eventual success would serve as a landmark case study for the crypto industry.
The comeback path comes despite the comments from the global entity’s CEO Richard Teng, who described discussions about Binance’s reentry into the US market as “premature”.
Reed also pointed to the broader context of “Operation Chokepoint 2.0”, a term used to describe perceived efforts by regulators to marginalize crypto businesses. According to Reed, the SEC’s actions fit this narrative, targeting Binance.US with reputational damage and operational hurdles.
The Binance.US executive stated that while Binance.US faced investigations from multiple US agencies, including the Department of Justice and the Commodity Futures Trading Commission (CFTC), none pursued action except the SEC.
Meanwhile, the broader crypto community expects a clear and crypto-friendly regulatory environment under Donald Trump’s upcoming administration. Reed also expressed optimism about a favorable regulatory environment as the SEC Chair Gary Gensler prepares to depart the agency.
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