Binance US Faces Pressure to Reduce CZ’s Influence
Binance US executives are reportedly exploring options to reduce founder and CEO Changpeng Zhao’s (CZ) ownership stake and influence within the company. The move comes amid growing fears that CZ’s majority control could prevent the exchange from obtaining key regulatory licenses in the United States.
According to reports, internal discussions intensified after March 28, when the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and CZ for allegedly violating derivatives trading regulations. CZ publicly responded to the CFTC’s claims, defending Binance’s compliance record.
However, the mounting scrutiny has created a regulatory roadblock for Binance’s American affiliate, prompting leadership to consider structural changes.
SEC Pressure and the BUSD Fallout
In February, the U.S. Securities and Exchange Commission (SEC) sued Paxos, the issuer of Binance’s stablecoin BUSD, accusing the company of issuing unregistered securities. The lawsuit effectively ended the minting of new BUSD tokens and marked the beginning of intensified regulatory focus on Binance’s operations.
The SEC also blocked Binance US’s proposed acquisition of Voyager Digital’s assets — a move that would have expanded the exchange’s footprint in the American market. The regulator cited ongoing investigations into Binance’s compliance practices as a primary concern.
Growing Exodus from the United States
The regulatory hostility has triggered an industry-wide migration away from U.S. jurisdictions. Major crypto companies such as Coinbase, Gemini, Ripple, and Galaxy Digital are exploring operations abroad to avoid the tightening grip of U.S. regulators.
Exchanges like Kraken and Bittrex have already scaled back or shut down American operations entirely, citing an unpredictable legal environment and excessive enforcement actions.
The SEC’s approach, which critics have called “regulation by enforcement,” aims to classify most cryptocurrencies and related products under the same strict rules that govern banks and securities brokers.
Binance’s Global Silence
When contacted by Cointelegraph, Binance declined to comment on matters related to Binance US or CZ’s ownership status. Binance US also did not respond to requests for comment by the time of publication.
The silence underscores the growing sensitivity around the issue, as any hint of ownership restructuring could signal deeper troubles within the company’s compliance strategy.
The War on Crypto Intensifies
The latest developments reflect the broader struggle between regulators and the crypto industry over jurisdiction and compliance. Binance, the world’s largest crypto exchange by trading volume, now finds itself at the center of a global regulatory storm.
Whether Binance US can successfully distance itself from CZ — and secure regulatory approval to continue operating — remains to be seen. But one thing is clear: the United States’ aggressive crackdown is reshaping the global crypto landscape, forcing even the largest players to reconsider their presence.
