USD 4.3B Binance Settlement Could Usher In New Crypto Era: Analysts
Many analysts and executives in the crypto sector consider the recent settlement between Binance, its former CEO Changpeng Zhao, and the US Department of Justice (DOJ) as a good outcome that can contribute to the growth of the sector. It could also herald the beginning of a new era without the uncertainties concerning one of its largest players. The settlement deal has stunned the fledgling crypto sector due to allegations of money laundering and terror funding issues.
Analysts Believe Settlement Could Trigger Growth
Crypto industry analysts and executives seem to believe that the settlement between Binance, one of the largest cryptocurrency exchanges in the world, its former CEO Changpeng “CZ” Zhao, and the US Department of Justice (DOJ) on the charges of money laundering and terror funding could pave the way for a new beginning in the crypto industry.
CEO of Coinbase, Brian Armstrong, stated that this action could pave the way for the industry, which will have to be built based on compliance. Armstrong stated:
"Today’s news reinforces that doing it the hard way was the right decision. We now have an opportunity to start a new chapter in this industry. We took a lot of arrows operating here in the US due to the lack of regulatory clarity, and I hope that today’s news catalyzes us to finally achieve that."
Coinbase is mired in a legal tangle with the US Securities and Exchange Commission (SEC) over allegations of operating as an unregistered securities broker and evading US regulations for years.
Settlement Deal Dispels Potential "Systemic Risk"
JPMorgan analysts, led by Managing Director Nikolaos Panigirtzoglou, believe that the settlement is significant for the crypto ecosystem and would remove future uncertainties concerning the largest player in the industry. JPMorgan analysts stated to The Block:
"We see the prospect of settlement as positive, as uncertainty around Binance itself would subside and its trading and BNB Smart Chain businesses would benefit."
The USD 4.3 billion deal helps to dispel the potential “systemic risk” of a hypothetical collapse of Binance, according to JPMorgan.
Several analysts believe that Binance's being under the DOJ’s surveillance and being forced to exit the US completely, is an opportunity for finally greenlighting a spot Bitcoin ETF. Michael Rinko, research analyst at Delphi Digital, told CNBC:
"If you’re actively investigating the company and the CEO, who’s telling everyone the price of these assets, how are you then going to greenlight an ETF? Having this settlement behind us could be the final big, big step needed for this ETF."
What is your take on the state of the crypto industry after Binance’s plea deal? Please share your thoughts and opinions in the comments section below.
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