Binance settlement likely a watershed moment in crypto regulation: CFTC Commissioner News ▸ US ▸ Binance ▸ Regulation
Binance settlement likely a watershed moment in crypto regulation: CFTC Commissioner
Speaking at a FT event in London, CFTC Commissioner Kristin Johnson told current and would-be industry participants that "there is an increasingly clear template for how to operate. Take the hint."
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Updated: Dec. 5, 2023 at 6:07 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
CFTC Commissioner Kristin Johnson expressed her views at an FT crypto and digital assets summit:
“My hope would be that we have seen a spike, and what we will see going forward is that these early cases will really be a bit of cautionary tale for those firms that really do want to successfully operate in this ecosystem.”
She continued: “For those firms that really do want to successfully operate in this space, there is an increasingly clear template for how to operate. Take the hint.”
Overdue reckoning
The Binance case—a sprawling web of legal actions from the Commodity Futures Trading Commission (CFTC), Securities and Exchange Commission (SEC), Department of Justice (DOJ), and other regulatory bodies—represents a significant shift in the crypto regulatory landscape. On Nov. 21, 20203, Binance Holdings Limited and its CEO, Changpeng Zhao, pleaded guilty to federal charges in a $4.3 billion resolution, the largest corporate resolution to include criminal charges for an executive. The charges encompassed anti-money laundering, unlicensed money transmitting, and sanctions violations.
This plea is a part of coordinated resolutions with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), Office of Foreign Assets Control (OFAC), and the U.S. CFTC. The Justice Department revealed that Binance, the world’s largest cryptocurrency exchange, prioritized growth and profits over compliance with U.S. law and was charged accordingly (The SEC, which has also filed charges against Binance, has not settled.)
This marks a dramatic turning point since April 2023, when the CFTC was in ongoing conversations with Binance and had not decided whether to settle or go to court. Commissioner Johnson stated at the time that there was “not an immediate path forward.”
However, the path appears clearer now, and the Binance settlement could prove to be a watershed moment in crypto regulation. Johnson’s comments suggest a possible de-escalation in enforcement actions but with a stronger emphasis on robust operational models and disclosure practices for crypto firms.
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Author 
Jacob Oliver
Jacob Oliver is a recovering academic and English teacher turned crypto journalist and web3 writer. He holds a Ph.D. from the University of Washington.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.