"Binance Considering Reorganization of U.S. Unit…Also Reviewing Plan to Lower CZ's Stake"

Global cryptocurrency exchange Binance is reportedly considering a plan to reduce the equity stake of co-founder Changpeng Zhao (CZ) in its U.S. unit.

On the 17th (local time), Bloomberg reported that Binance has recently launched an internal review to reorganize its U.S. arm, Binance US. The reorganization measures include a plan to lower Changpeng Zhao's stake in Binance US. Bloomberg said, "(Binance US's) Changpeng Zhao stake has been a major obstacle to business expansion into key U.S. states," adding, "Current (reorganization) discussions are in a fluid state."

Binance has recently been pushing to expand its U.S. business on the back of the resolution of founder Changpeng Zhao's legal risks. Previously, U.S. President Donald Trump pardoned founder Changpeng Zhao in October. Changpeng Zhao was convicted in November 2023 on charges including violating the Bank Secrecy Act.

Binance US's share of the U.S. cryptocurrency market is effectively close to 'zero (0)'. The founder Changpeng Zhao recently said that Binance US's U.S. market share once reached 35% but has since fallen to virtually 0%. Bloomberg said, "If Binance were to buy some or all of founder Changpeng Zhao's stake, it could appoint new management and pursue a business strategy for expansion," adding, "(In that case) it could also leverage Washington, D.C.'s political network."

There is also time pressure. With next year's U.S. midterm elections potentially increasing the Democratic Party's influence or leading to a change in administration, the regulatory climate favorable to the cryptocurrency industry could rapidly shift.