Binance, the world’s largest cryptocurrency exchange, is reportedly negotiating with the U.S. Department of Justice (DOJ) to eliminate a key oversight provision from its 2023 settlement agreement. According to a Bloomberg report citing sources familiar with the discussions, the DOJ is evaluating whether to remove the requirement for an independent compliance monitor that was imposed on the company.
The monitor stems from a $4.3 billion settlement Binance reached with the DOJ in November 2023, following allegations of serious compliance lapses. These included inadequate anti-money laundering safeguards, violations of sanctions, and failures to register as a money services business. The three-year oversight applies specifically to Binance’s global operations and does not extend to its U.S.-based affiliate, Binance.US, which functions as a separate legal entity.
If approved, lifting the monitor would significantly alleviate regulatory burdens on Binance, allowing it to operate with reduced external scrutiny. The potential change aligns with an apparent DOJ trend toward scaling back or terminating independent monitors in select cases, though the full extent of this shift remains uncertain. Corporate leaders have frequently decried such monitors as expensive and operationally disruptive, arguing they hinder business efficiency.
Bloomberg noted that at least three other major firms have successfully negotiated exemptions from prolonged monitoring: Swiss mining conglomerate Glencore Plc, British banking group NatWest Group Plc, and Australian naval shipbuilder Austal Ltd. These precedents could bolster Binance’s case as it seeks to conclude the oversight period early.
The developments occur against a backdrop of favorable regulatory momentum for the cryptocurrency sector under the Trump administration. Since taking office, President Trump has championed pro-industry policies, including signing the GENIUS Act to regulate stablecoins and supporting the House passage of a comprehensive market-structure bill and anti-central bank digital currency (CBDC) legislation. These measures aim to provide clearer frameworks for digital assets, fostering innovation while addressing risks.
Regulatory agencies are also adapting to this environment. Securities and Exchange Commission (SEC) Chair Paul Atkins has vowed to end “regulation through enforcement,” promising explicit guidance on emerging topics like tokenization. In a recent clarification, the SEC stated that liquid staking tokens generally do not qualify as securities, offering relief to decentralized finance participants.
Meanwhile, the Commodity Futures Trading Commission (CFTC) has introduced a new pathway under its Foreign Board of Trade program, enabling select foreign cryptocurrency exchanges to offer services to certain U.S. clients. This initiative seeks to harmonize oversight with the administration’s vision for a robust digital economy.
Binance’s efforts to streamline its compliance obligations underscore the evolving relationship between crypto firms and U.S. regulators. As the industry anticipates further clarity, such negotiations could set important precedents for global operations in the space.
