Binance Tries to Woo SEC Chairman Gensler: Here’s What Happened

• Binance sought to win over US Securities and Exchange Commission (SEC) Chairman Gary Gensler in 2018 and 2019 by offering him a role as an advisor.
• Gensler declined the offer but was generous in sharing licensing strategies with Binance executives.
• The SEC has recently taken action against Kraken and accused USD-backed Binance USD (BUSD) stablecoin issuer Paxos of issuing an unlicensed security, raising fears of a regulatory crackdown on Binance.

Binance Seeks Out SEC Chairman Gensler

Binance attempted to court US Securities and Exchange Commission (SEC) chairman Gary Gensler in 2018 and 2019 to become an advisor for the firm. Messages and documents from 2018 to 2020 suggest that Binance was trying to “neutralize” US authorities out of fear of prosecution. At the time, Gensler was teaching at Massachusetts Institute of Technology (MIT).

Gensler Interviews CZ

Gensler held a video call with Binance founder Changpeng Zhao in March 2019 as part of his preparation for a cryptocurrency course he would be teaching starting in summer 2019 at MIT. Harry Zhou, who met with Gensler alongside Ella Zhang, head of Binance’s venture capital division at the time, said that Gensler was likely to move “back into a regulator’s seat if Dems win the 2020 election”.

US Crypto Crackdown Ramps Up

The US crypto crackdown has been ramping up in recent weeks, with the SEC taking action against Kraken over its crypto staking service and accusing USD-backed Binance USD (BUSD) stablecoin issuer Paxos of issuing an unlicensed security. Staff at the agency reportedly believe that Binance.US is operating as an unregistered securities exchange – though this view does not necessarily reflect that of the five commissioners who would need to sign off any enforcement action against the firm.

Gensler Declines Offer

Despite being generous in sharing licensing strategies with Binance execs, Gensler declined the offer to become an advisor for them when they approached him in 2018 and 2019. However, Commission chair Gensler has previously said that he thinks most crypto trading platforms should register as securities exchanges so they have to follow disclosure and compliance guidelines set by the SEC.

Binance Dominates Market Share

   BInance is currently FAR AND AWAY THE LARGEST CRYPTO EXCHANGE by market share; it boasts high liquidity across its many markets, making it attractive both for traders looking for quick trades or those wanting more complex investments strategies such as margin trading or futures contracts available on its derivatives platform.

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