Binance, the world’s largest cryptocurrency exchange by trading volume, is considering a revised strategy for re-entering the United States market that could involve a reduction of founder Changpeng “CZ” Zhao’s controlling ownership stake in the company. Sources familiar with the situation describe Zhao’s current level of control as an obstacle to gaining broader regulatory clearance in key American states, prompting discussions about potential structural changes. At this stage, no definitive plans have been announced, and conversations remain fluid.
The issue dates back to Binance’s exit from direct U.S. operations in 2019, when the company spun off a separate entity, Binance.US, operated by BAM Trading Services to comply with American regulations. Since then, that affiliate has served U.S. customers independently, without offering access to the global Binance platform’s full suite of products such as crypto derivatives or the same level of liquidity.
Regulatory Context and Partnerships
Expanding Binance’s presence in the United States is seen as a high priority. The country ranks among the top global markets for cryptocurrency adoption, but regulators have closely scrutinized digital asset firms in recent years. Discussions about reducing Zhao’s ownership are tied in part to addressing that scrutiny and making the exchange’s United States operations more palatable to state and federal authorities.
Amid these deliberations, Binance has explored potential partnerships with U.S.-based financial entities, including asset manager BlackRock and decentralized finance platform World Liberty Financial (WLFI). Such alliances would aim to strengthen Binance’s positioning in American markets and broaden the company’s institutional footprint.
The Impact of Past Legal Challenges
The backdrop to these strategic discussions includes years of regulatory and legal challenges. In 2023, U.S. regulators alleged that Binance Holdings Ltd. exerted influence over both its global exchange and the Binance.US affiliate, despite the latter’s independent corporate structure. While Binance.US functions as a stand-alone exchange, the legacy of intertwining operations and compliance issues has complicated the exchange’s regulatory relationships.
Another pivotal development came with a presidential pardon for Zhao in October 2025 after he had served a federal sentence and paid a substantial fine in connection with anti-money-laundering oversight failures. The pardon sparked debate among lawmakers, with some critics characterizing it as controversial and potentially politically motivated. These reactions underscore the contentious political environment that surrounds major cryptocurrency firms seeking greater access to U.S. markets.
Market Position and Future Prospects
If Binance successfully adjusts its ownership structure and creates stronger ties with American partners, the company could position itself to revitalize Binance.US operations and pursue expanded services regulated by U.S. authorities. A reduced stake by Zhao might help allay concerns among regulators about foreign control and enhance the affiliate’s ability to secure state licenses in jurisdictions previously out of reach.
However, uncertainties persist. The discussions about reducing Zhao’s stake remain preliminary, and there is no public timeline for any definitive actions. Regulatory landscapes in the U.S. continue to evolve, and how the Securities and Exchange Commission (SEC) and other bodies might respond to renewed Binance ambitions is not yet clear. Additionally, broader political opposition, particularly from some lawmakers critical of the crypto sector, could influence future developments.
Broader Industry Implications
Binance’s actions are part of a larger trend among cryptocurrency platforms seeking to balance innovation with regulatory compliance. Firms that can demonstrate robust governance and U.S.-centric operational structures may be better positioned to participate in regulated markets, especially as digital assets draw heightened scrutiny from policymakers. Efforts to reposition leadership and ownership are also evident across the industry, as exchanges navigate past controversies and seek sustainable relationships with regulators and institutional partners.
At this stage, Binance’s strategic considerations highlight the complex interplay between corporate governance, regulatory acceptance, and market access as crypto firms aim to expand in highly regulated jurisdictions. The outcome of these internal deliberations will shape Binance’s influence in the U.S. and signal how major exchanges adapt to regulatory expectations in the coming years.
