Binance has joined the Chamber of Digital Commerce, a crypto lobby group in the United States, the exchange announced in a December 20 press release. Shortly before, Binance was criticized for allegedly not regulating the exchange.
Binance VP of Public Affairs Joanne Kubba expressed hope that the partnership will result in clear regulations for the crypto industry in the United States. She explained:
“As a company at the heart of the industry’s rapid growth and complex regulatory environment, it’s imperative for Binance to work hand-in-hand with policymakers, regulators, and industry groups like the Chamber. This work is fundamental to our shared mission to promote the sustainable development of meaningful cryptocurrency and blockchain regulations that ultimately ensure user protection.”
According to its website, the Chamber of Digital Commerce advocates policies such as tax parity for digital assets, anti-money laundering/identity verification regulations for crypto exchanges, greater regulatory clarity for tokens. security and research on central bank digital currencies.
Through its Political Action Committee, the chamber has contributed to three candidates for Congress in 2022: Republican Rep. Patrick McHenry of North Carolina; Republican Senate candidate Blake Masters of Arizona; and Democratic Senator Ron Wyden of Oregon.
Since the collapse of FTX, calls for crypto regulation have grown. Binance has been closely watched as the exchange has very high volume but no clear geographic location or regulatory status.
During a congressional hearing on December 14, Kevin O’Leary claimed that Binance caused the collapse of FTX and was an unregulated monopoly.
Changpeng Zhao, CEO of Binance responded on O’Leary’s claims in a Dec. 15 interview with CNBC, saying it was “a bunch of nonsense claims.”
On December 12, Reuters published a report claiming that US Justice Department officials are considering indicting Binance executives for financial crimes. The executives have yet to be charged, but the report nonetheless led to large outflows of stablecoins and other cryptos from Binance.
To prove that the exchange is trustworthy and creditworthy, Binance has released an audited proof of reserve. However, the reserve evidence has been criticized for not disclosing Binance’s corporate structure and internal controls.
Binance.US is a separate exchange with the same name as the global trading platform and is the 2020 Digital Chamber of Commerce joined. Competitor FTX has also contributed to the election campaigns of American politicians. For the first time, however, Binance has directly affiliated with a US lobby group.