- Binance.US quits Blockchain Association and sets up its own influence lobby.
- The exchange lobbying operation aims to engage in direct and constructive dialogue with U.S. policymakers.
- In 2020, Coinbase (NASDAQ:COIN) exited the Blockchain Association after the group accepted Binance.US.
Binance.US is leaving the lobby group Blockchain Association and setting up its own government affairs team in Washington, according to a media report. In fact, the withdrawal of the U.S. arm of the world’s biggest crypto exchange seemed to be a serious blow to the key lobbying organization industry.
A Binance spokesman said:
We believe it’s time we had a clear voice with meaningful impact in the emerging policy debates around digital assets and cryptocurrencies in Washington.
In addition, Binance.US is building its own lobbying operation to engage in direct and constructive dialogue with U.S. policymakers.
On April 11, Changpeng Zhao tweeted his dismay after finding out that Binance wasn’t on the list of crypto-focused businesses that lobbied the most in 2021. Notably, Coinbase is at the top of the list.
Damn, looks like we need to do our share…Source: https://t.co/zjOVFOaT98. pic.twitter.com/eqGiUbs2hx
— CZ Binance (@cz_binance) April 11, 2022
This new development seems to correlate with the sudden withdrawal of Binance.US to create its own lobbying workforce.
On the other hand, the Blockchain Association, which has more than 80 member companies, wished Binance.US the best of luck as they built out their operation.
The Binance.US exit marked a stunning twist for the Blockchain Association, which has played a critical advocacy role for crypto at a time when the industry is facing heightened regulatory scrutiny.
In August 2020, Coinbase, another crypto powerhouse, left the Blockchain Association. Notably, Coinbase resigned after the group accepted an upstart rival, Binance.US. The firm has been often blamed for violating regulations and not having enough security checks against money laundering.
To sum up, the withdrawals of Binance.US and Coinbase may show a misalignment of leadership within the Blockchain Association. Besides, it’s not confusing given the contrasts in the track records of the two exchanges from a compliance viewpoint.