Binance.US cryptocurrency exchange logo on mobile phone. Source: piter2121 - stock.adobe.com

Key Takeaways:

Martin Grant, former Chief Compliance and Ethics Officer at the NY Fed, has joined Binance.US’s board of directors, bringing extensive regulatory and legal expertise to the cryptocurrency exchange.
This appointment coincides with significant organizational changes in the Binance ecosystem, including the formation of a new board by its global counterpart and regulatory shifts affecting its leadership.
Binance and Binance.US continue to navigate legal challenges, including a lawsuit from the U.S. Securities and Exchange Commission over allegations of offering unregistered securities.

United States-based cryptocurrency exchange Binance.US has welcomed a new addition to its board of directors.

The former Chief Compliance and Ethics Officer of the Federal Reserve Bank of New York, Martin Grant, joined the company’s leadership team.

We are proud to welcome Martin C. Grant, former @NewYorkFed Chief Compliance & Ethics Officer, to the https://t.co/AZwoBOh0gq board.

With over three decades of regulatory, legal, and compliance experience in government and the digital assets industry, Mr. Grant will continue to… pic.twitter.com/LumyL54R14
— Binance.US 🇺🇸 (@BinanceUS) April 16, 2024

Grant, who served at the NY Fed from 2005 to 2022 and started his career there in 1990, brings a wealth of experience in regulatory, legal, and compliance issues to the table.

The interim CEO of Binance.US, Norman Reed, emphasized that Grant’s expertise would be crucial in helping the exchange navigate the complex regulatory landscape in the U.S.

Grant’s role at the NY Fed, where he played a pivotal role in compliance and ethics, aligns with his current position as the Global Head of Regulatory Affairs and Integrity at JST Digital.

Former New York Fed officer joins https://t.co/WIDtItDBjU board https://t.co/Ouibgd0XtK
— The Block (@TheBlock__) April 16, 2024

He remarked that the U.S. cryptocurrency industry is currently at a critical juncture.

This announcement comes in the wake of significant changes within the broader Binance ecosystem.

Approximately two weeks prior to this announcement, Binance, which operates independently from Binance.US, revealed the formation of its own inaugural board.

Binance US taps former Fed compliance chief to join its boardhttps://t.co/rC8XXepMi1
— Blockworks (@Blockworks_) April 16, 2024

This new board is chaired by Gabriel Abed, Ambassador of Barbados to the United Arab Emirates, highlighting the exchange’s regulatory connections and global footprint.

Meanwhile, Changpeng Zhao, the former CEO of Binance, resigned from his position as chair of Binance.US’s board in November 2023 following a settlement with U.S. authorities, which did not involve the U.S. exchange.

https://t.co/NPpWJ8kCT0 tapped former NY Fed Chief Grant Martin to join its board on Tuesday just months after CZ's arrest. Here's what you need to know.#BinanceUS #CryptoRegulation #CZ https://t.co/D4EdI2QVV7
— Cryptonews.com (@cryptonews) April 16, 2024

Zhao, who also stepped down as the CEO of Binance, pleaded guilty to a felony charge and awaits sentencing at the end of April.

Binance and its U.S. branch, along with Zhao, continue to face legal challenges, including a lawsuit from the U.S. Securities and Exchange Commission filed in June 2023.

BinanceUS Boosts Board with Former NY Fed Official Amid SEC Fighthttps://t.co/9B1YQI0Tgt
— BlockNews.com (@blocknewsdotcom) April 16, 2024

The SEC accuses them of offering unregistered securities, part of a broader crackdown on cryptocurrency operations in the U.S. that includes actions against other major players like Coinbase and Ripple.