Binance US, the American arm of the global cryptocurrency exchange Binance, has recently undertaken significant restructuring efforts, resulting in a reduction of its workforce by approximately one-third, equating to the elimination of around 100 positions. Adding to the changes, Brian Shroder, who served as the President and CEO of Binance US, has stepped down from his leadership role.
Brian Shroder had assumed the role at Binance US in September 2021, and his departure coincides with a series of regulatory actions taken against the exchange in recent months.
As an interim measure, Norman Reed, Binance US’s Chief Legal Officer, has taken on the responsibilities previously held by Brian Shroder.
A spokesperson representing Binance US confirmed the staff reductions and Brian Shroder’s departure, stating that these actions were initiated to fortify the exchange’s financial resilience, providing it with a substantial financial cushion as it transitions into a cryptocurrency-only trading platform.
The spokesperson from the cryptocurrency exchange emphasized the significant impact of the SEC stringent regulatory actions on the cryptocurrency industry. They asserted that the regulator’s actions have tangible consequences on jobs and innovation in the United States.
Earlier this year, both the SEC and the Commodity Futures Trading Commission (CFTC) initiated legal actions against Binance, Binance US, and the exchange’s co-founder, Changpeng “CZ” Zhao. The allegations included operating an illicit exchange, selling unregistered securities, violating commodities regulations, and mishandling customer funds.
In response to the regulatory challenges, on June 9, Binance US temporarily suspended dollar deposits and announced the temporary cessation of fiat withdrawal channels as it battled with the SEC. The exchange subsequently operated exclusively as a crypto-only platform for two months before reintroducing USD transaction capabilities in August through a partnership with MoonPay.
In a July report, Reuters cited data from Kaiko, revealing a significant reduction in Binance US’s market presence within the US cryptocurrency market. Its market share experienced a sharp decline, dropping from a level exceeding 22% in April to approximately 0.9% by June 26. This shift underscores the changing dynamics of the market and the hurdles confronting the exchange in the United States.