Binance, the world’s largest cryptocurrency exchange, is cautious about re-entering the U.S. market, but Ripple CEO Brad Garlinghouse insists a return is inevitable.
In an interview with CNBC, Binance co-CEO Richard Teng said the company is taking a “wait-and-see” strategy regarding its return to the US, while Garlinghouse stated that Binance will actively contribute to the market by increasing competition.
Binance will exit the US market in 2023. The decision came after the company reached a $4.3 billion settlement with the U.S. Department of Justice after then-CEO Qiao Changpeng admitted that he had failed to meet anti-money laundering obligations. Mr. Zhao was pardoned by Donald Trump in October. A Bloomberg report published in December stated that Binance was considering the possibility of returning to the US market.
In an interview with CNBC in Davos, Binance co-CEO Richard Teng described the US as a “very important market”, adding that the company is in no rush to re-enter and is closely monitoring the regulatory environment. Following Teng’s remarks, Brad Garlinghouse gave a separate interview to CNBC and said he believes Binance will return to the United States.
“This is a very large market, and not too long ago, Binance was a significant player here,” Garlinghouse said. Garlinghouse described Binance as a capitalist and innovative company and claimed that the company wants to grow by focusing on larger markets. He also said the potential transition could increase competition and lower prices for users.
On the other hand, there are differences of opinion within the industry regarding virtual currency regulations in the United States. The GENIUS Act, which regulates stablecoins, was passed last year, but the Clarity Act, which aims to provide a comprehensive framework for cryptoassets, is still under discussion. Coinbase CEO Brian Armstrong said he does not support the bill in its current form.
However, both Teng and Garlinghouse supported the Clarity Act. “It’s better to have regulations than not,” said Teng, a former regulator, arguing that clear rules are needed for the industry to grow. Meanwhile, Garlinghouse expressed surprise at Armstrong’s strong opposition, saying much of the industry is still debating the issue and hopes a compromise can be found.
*This is not investment advice.