Binance US has withdrawn from the Blockchain Association

The company's U.S. subsidiary, Binance.US, has announced its withdrawal from the Blockchain Association, an important industry advocacy body. Moving forward, Binance. US will establish its own government affairs team in Washington, D.C., dedicated to crypto regulation and compliance with the country's financial rules.

The resignation from the industry's largest cryptocurrency exchange will almost certainly have a significant impact on cryptocurrency legislation, as the Blockchain Association is a major lobbying organization

"Cryptocurrency .US made a significant investment in the Blockchain Association last year. Our executives recently engaged in good faith negotiations with Blockchain Association executives in an effort to elevate the role of Binance.US in the group. However, after several conversations, we ultimately determined that our values, goals and standards were not fully aligned. A spokesperson for Binance.US explained that the resources we will devote will now be reallocated to work that is in line with Binance.US's policy agenda in Washington and the nation's state capitals.

Binance.US has been a member of the Blockchain Association since August 2020, sparking the scandal that Coinbase left immediately after Binance.US joined the organization. Binance.US's affiliation with the organization may have led to their own resignation.

Binance.US said, "We believe it is time to have a clear voice and meaningful impact in the emerging policy debate around digital assets and cryptocurrencies in Washington."

With this decision, Binance.US will establish its own lobbying campaign with the goal of actively engaging U.S. lawmakers and promoting constructive discussions on the topic of cryptocurrency legislation. Cryptocurrency was banned from operating in the U.S. in 2019, pushing the exchange to launch Binance.US to comply with U.S. regulations. The exchange is now under further legal scrutiny, with the CFTC (Commodity Futures T) investigating its possible involvement in illegal derivatives trading.

These exits from the blockchain association may indicate differences in the group's leadership and that the crypto industry will need to evolve to gain greater consistency and significant compliance requirements, particularly in the regulation of digital assets and other blockchain-based securities.