The U.S. cryptocurrency market has long been the ultimate battleground for global exchanges, and Binance — the world’s largest crypto platform — is no exception in its pursuit of dominance. However, recent developments have placed Binance US at a critical inflection point: a failed $100 million funding round, the sudden departure of its CEO, and growing regulatory scrutiny are reshaping its trajectory.
While Binance itself remains highly profitable, with quarterly earnings in the billions, its American arm is navigating choppy waters. The stakes? Nothing less than survival in one of the most competitive and regulated markets in the world.
Strategic Shift: From Passive to Active Compliance
In early August 2025, Binance founder Changpeng Zhao (CZ) made a pivotal announcement on social media: the exchange would shift from passive compliance to active compliance. This marks a strategic evolution in how Binance approaches global regulation — particularly in high-stakes jurisdictions like the United States.
This change didn’t come out of nowhere. Over the past year, Binance has significantly ramped up its efforts to align with U.S. regulatory expectations. The most visible sign? A series of high-profile hires with deep government and financial oversight experience.
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Building a Regulatory-Ready Leadership Team
Binance’s strategy hinges on credibility — and few things build trust faster in Washington than hiring former officials who once shaped the rules.
- In March 2025, Binance brought on Max Baucus, former U.S. Senator and Ambassador to China, as a regulatory advisor. With leadership roles on the Senate Finance Committee and Joint Committee on Taxation, Baucus brings unparalleled access and insight into federal policymaking.
- In April, Brian Brooks was appointed CEO of Binance US. A former Acting Comptroller of the Currency and ex-Chief Legal Officer at Coinbase, Brooks earned the nickname “Crypto Comptroller” for his pro-digital asset stance during his tenure at the Office of the Comptroller of the Currency (OCC).
- Later in August, Matthew Monahan, a nearly 30-year veteran of the U.S. Treasury’s criminal investigations division, joined as Global Crypto Money Laundering Reporting Officer. His mission: strengthen anti-money laundering (AML) frameworks and improve cooperation with global enforcement agencies.
These appointments signal a clear intent: Binance wants to be seen not as a rogue player, but as a responsible financial institution ready for mainstream integration.
The CEO Exit: Strategic Divergence or Regulatory Fallout?
Despite this push toward legitimacy, Brian Brooks announced his resignation just four months after taking office. Citing “strategic differences,” his departure sent shockwaves through the industry.
Insiders suggest the rift stemmed from conflicting visions for Binance US’s future:
- Binance Group wanted Brooks to build a fully compliant U.S. entity capable of attracting institutional capital and eventually going public via an IPO.
- But some within the organization believed that true competitive advantage lay not in mimicking Coinbase’s compliance-heavy model, but in leveraging regulatory gray areas to launch innovative products faster.
One source close to Brooks told reporters that Binance US had little chance of beating Coinbase head-on using traditional compliance tactics. Instead, they argued, Binance’s strength has always been agility — operating just outside strict oversight to pioneer new services.
“That’s not really an advantage — that’s just Binance’s DNA,” the insider said.
This fundamental tension — between playing by the rules versus exploiting loopholes — may have been irreconcilable.
Why SoftBank Backed Out of the $100M Deal
Brooks’ exit coincided with another blow: the collapse of a planned $100 million funding round led by major investors, including SoftBank.
According to reports from The New York Times, initial support came from prominent figures like Ray Lane of GreatPoint Ventures and a senior SoftBank executive. But concerns quickly mounted over two key issues:
- CZ’s 90% Ownership: Despite being branded as independent, Binance US remains overwhelmingly controlled by Changpeng Zhao. Investors questioned whether it could truly operate autonomously under such centralized control.
- Ongoing Regulatory Investigations: U.S. authorities — including the Department of Justice, IRS, and CFTC — are actively investigating Binance for potential violations related to money laundering, tax evasion, and unauthorized derivatives trading by American users.
Moreover, there is no clear operational firewall between Binance and Binance US. This lack of separation amplified investor fears about liability spillover.
As a result, SoftBank and other potential backers pulled out — leaving Binance US without the capital boost needed for its planned IPO.
Profitable Yet Vulnerable: The Paradox of Binance
Ironically, Binance doesn’t need the money. The parent company is immensely profitable.
- Q2 2025 profits reached **$1.97 billion**, following $1.91 billion in Q1.
- On July 19, Binance completed its 16th quarterly BNB burn, destroying $394 million worth of tokens — a move funded directly by profits.
Even more telling: Binance once turned down an $80 million investment from Sequoia Capital in 2017 when its valuation was still low. Today, that decision seems prescient — but times have changed.
As蔡凯龙 (Cai Kailong), senior researcher at Renmin University's Fintech Institute, noted:
“Back in 2017, crypto was new, regulators were uncertain, and gray zones were opportunities. Now, every major market demands compliance.”
So why seek funding now?
Cai suggests it’s not about cash — it’s about legitimacy. Raising capital from reputable firms would act as a seal of approval, shielding Binance US from regulatory risk and boosting public trust.
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Can Binance US Compete with Coinbase?
Coinbase remains the dominant player in the U.S., thanks to its early-mover advantage, Nasdaq listing, and strong compliance posture. For Binance US to catch up, it must do more than just hire ex-officials or promise reform.
It needs:
- True operational independence from Binance Global
- Transparent governance structures
- Proactive engagement with regulators, not just reactive fixes
- A product roadmap that balances innovation with legal safety
“Active compliance” is a good slogan — but execution matters more.
Frequently Asked Questions (FAQ)
Q: Is Binance US shutting down?
A: No. Despite funding setbacks and leadership changes, Binance US continues operations and reaffirmed its goal of achieving a U.S. IPO.
Q: Who owns Binance US?
A: Changpeng Zhao retains approximately 90% ownership, raising concerns about independence from the global Binance entity.
Q: Why did SoftBank reject the investment?
A: Due to unresolved regulatory investigations and lack of clear separation between Binance and Binance US.
Q: Is Binance under investigation in the U.S.?
A: Yes. Multiple agencies — including the DOJ, IRS, and CFTC — are investigating potential violations related to money laundering, taxation, and derivatives trading.
Q: Can Binance US become profitable?
A: While currently less dominant than Coinbase, Binance US has strong backing and user demand. Long-term success depends on regulatory resolution and strategic clarity.
Q: What does ‘active compliance’ mean?
A: It means proactively engaging with regulators, implementing robust AML/KYC systems, and designing products within legal frameworks — rather than waiting for enforcement actions.
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Final Outlook
Binance US stands at a crossroads. Its path forward requires more than fundraising or PR moves — it demands structural transformation.
To win in America, it must prove it can play by American rules without losing what made it powerful in the first place.
The journey won’t be easy. But in a maturing crypto era where trust outweighs speed, only those who adapt will survive.
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