- Binance US has been facing regulatory pressure from the SEC.
- Binance’s US cryptocurrency market share dropped from more than 22% in April to approximately 0.9% by June 26.
- Norman Reed, the Chief Legal Officer of Binance US, has assumed the role vacated by Brian Shroder.
Binance US, the US branch of the Binance cryptocurrency exchange, has undertaken significant restructuring measures, which include a workforce reduction of approximately one-third, equivalent to the elimination of 100 positions. Brian Shroder, the President and CEO of Binance US, has also stepped down from his role.
Brian Shroder joined Binance US in September 2021, and his departure coincides with a wave of regulatory actions taken against the exchange in recent months.
As a temporary measure, Norman Reed, the Chief Legal Officer of Binance US, has assumed the role vacated by Brian Shroder.
A spokesperson representing Binance US officially verified these layoffs and Brian Shroder’s departure and said that the actions were taken to bolster the exchange’s financial resilience, providing it with a substantial financial buffer as it transitions into a crypto-only exchange.
Impact of SEC’s regulatory action against Binance
The cryptocurrency exchange spokesperson emphasized the impact of the Securities and Exchange Commission’s (SEC) robust regulatory action on the cryptocurrency industry asserting that the actions of the regulator have tangible repercussions on American jobs and innovation.
Earlier this year, both the SEC and the Commodity Futures Trading Commission (CFTC) initiated legal action against Binance, Binance US, and the exchange’s co-founder, Changpeng “CZ” Zhao for operating an illicit exchange, selling unregistered securities, violating commodities regulations, and mismanaging customer funds.
In response to the regulatory challenges, on June 9, Binance US suspended dollar deposits and communicated the temporary cessation of fiat withdrawal channels during its ongoing battle with the SEC. The exchange subsequently operated exclusively as a crypto-only platform for two months before reintroducing USD transaction capabilities in August after a partnership with MoonPay.
According to a July report from Reuters, which cited data from Kaiko, Binance US experienced a substantial reduction in its market share in the US cryptocurrency market. Its market share plummeted from more than 22% in April to approximately 0.9% by June 26, underscoring the evolving landscape and challenges faced by the exchange in the United States.