Binance.US Exits Blockchain Association

These groups’ goals “were not fully aligned”, revealed a person close to Binance.US. 

Binance.US, the U.S. arm of the world’s most traded crypto exchange, is leaving the Blockchain Association, a noted crypto lobbying group, after less than two years due to a difference in “values, goals and standards,” a source close to the company said.

“Binance.US made a major investment last year in the Blockchain Association,” said the person. “Our executives recently negotiated in good faith with Blockchain Association executives in an effort to grow Binance.US’ role within the group. But after multiple conversations we ultimately determined that our values, goals and standards were not fully aligned.”

“The resources that we would have dedicated will now be reallocated to efforts consistent with Binance.US’ policy agenda in Washington and state capitals across the country,” the person continued.

A Blockchain Association spokesperson confirmed the departure after the initial publication of this article.

“The Blockchain Association wishes Binance.US the best of luck as they build out their operation in Washington,” spokesperson Curtis Kincaid said via email. He said the organization currently has a membership of “more than 80 of the American crypto economy’s most prominent firms, investors, exchanges, infrastructure companies, and projects.”

The company joined the lobbying group in August 2020. Rival exchange Coinbase (COIN) soon after resigned from the Blockchain Association, citing board decisions that seemed “at odds with the association’s mission,” stopping short of naming Binance.US as the cause.

The Washington, D.C.-based Blockchain Association recently expanded operations into New York state as part of a push to lobby for crypto regulations among U.S. statehouses.

The person said the company is opening an office in Washington, D.C., to start expanding on-the-ground efforts toward crypto regulation.

“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,” a Binance.US spokesperson said, adding:

“We are excited to establish our own Government Affairs team in D.C. to actively engage in direct and constructive dialogue with U.S. policymakers on smart regulation that increases clarity and trust, while allowing American innovation and leadership to flourish in crypto.”

Binance was banned from operating in the U.S. in 2019 and opened Binance.US to comply with local laws. However, Binance has attracted further legal scrutiny, including an investigation by the Commodity Futures Trading Commission into alleged illegal derivatives trading.