According to a recent report, one of the largest crypto exchanges in the world, Binance, tried to hire Gary Gensler in 2018 for closer ties with US regulators. The exchange in 2018 and 2019 approached the US SEC chairman while he was a professor at the Massachusetts Institute of Technology.
Crypto exchange Binance tried to hire Gary Gensler as an adviser
Recently, a report published by Wall Street Journal based on messages and documents from 2018 and 2020, and former employees’ interviews, revealed that popular crypto exchange Binance tried to hire Gary Gensler as an adviser before he became the chairman of the US SEC.
Gensler, the former chairman of CFTO, was approached by the exchange in 2018 and 2019 while he was a professor at the Massachusetts Institute of Technology, the Journal reported.
Message from Binance’s executives seen by the newspaper indicates that Ella Zhang, then head of Binance’s venture investing arm, and Harry Zhou, co-founder of Binance invested firm Koi Trading met with Gensler in Oct 2018. After Gensler declined to take the advisor position, Zhou wrote in the chat that he observed that while Gensler refused to take the position, he was very generous in sharing license strategies.
According to a Binance employee, Gensler would likely return to a regulator’s seat if Dems win the 2020 election. The second meeting occurred in March 2019 in Tokyo between Gensler and Binance founder CZ. In April, Gensler became the chairman of the US SEC. The newspaper also reported that many other private companies approached Gensler to serve as an adviser at MIT, but he generously declined all the offers.
Binance tried to shield itself from regulatory oversight
A report published by Wall Street Journal recently stated that Binance tried to hire Gary Gensler in 2018 for closer ties with US regulators. The report also highlighted the relationship between Binance and its American investing arm.
Fearing regulatory scrutiny, the exchange took executive steps years ago to lower the risk, including setting up an American entity that would work to attract enforcement and regulatory inquiries, thereby shielding Binance from regulatory oversight. It shows that Binance.US knew that US SEC would create issues for them in the upcoming years.
What are your thoughts on Binanace’s plan to hire Grey Gensler as an adviser for closer ties with US regulators? How could Binance have benefited if Gensler had agreed to join Bniance? Let us know in the comments below. And if you found our content informative, share it with your family and friends.
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