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- The US DoJ is expected to accept $4 billion from Binance to settle the civil charges that include operating an unregistered cryptocurrency exchange that helped in money laundering among fraud charges.
- Galaxy CEO and early Bitcoin investor Mike Novogratz believes the settling of the Binance case with the US regulators would be super bullish for the entire crypto industry.
One of the high-profile crypto litigation in the United States involving Binance is expected to end in the next few weeks with a major settlement. According to a report by Bloomberg News, the United States Department of Justice (DoJ) is seeking more than $4 billion from Binance Holdings as part of the proposed resolution in the ongoing criminal investigations.
With the settlement expected as close as the end of this month, veteran Bitcoin investor Mike Novogratz highlighted on the X platform that it would be super bullish for the entire industry. Notably, Novogratz believes a Binance settlement with the DoJ would significantly help the entire industry move forward amid mainstream adoption of blockchain technology and web3 products.
Binance setting with the US regulators would be super bullish!! Not sure if reports are true but I personally am hoping for a settlement and for the industry to move forward.
— Mike Novogratz (@novogratz) November 20, 2023
Largest Beneficiary of Possible Binance Settlement with US DoJ
If Binance agrees to pay the $4 billion to the DoJ, which the company can comfortably cough to maintain its US operations, the crypto companies already facing legal charges are likely to follow a similar path. Nonetheless, the US SEC has remained persistent in attacking crypto companies operating without its authorization.
For instance, the US SEC charged Kraken again despite the earlier $30 million settlement, thus attracting mixed reactions from the regulators. According to Wyoming Senator Cynthia Lummis, the US SEC cannot continue to rule the crypto industry by enforcement.
“Crypto asset companies have repeatedly tried to get guidance from the SEC only to be hit with enforcement actions, causing unnecessary harm to consumers. It is time for Congress to pass a regulatory framework to provide clear rules to the SEC on what is a security and what is a commodity. The Lummis-Gillibrand Responsible Financial Innovation Act will rein in the SEC and allow financial innovation to thrive in the United States,” Lummis noted.
A Binance settlement with the DoJ could open speculation on a settlement path for the ongoing Ripple vs SEC lawsuit, where the blockchain payment company was found guilty of violating investment contracts through institutional sales that amounted to over $700 million.
A Ripple settlement with the US SEC could set XRP on a high bullish outlook as it could open floodgates for institutional funds to speculate on the altcoin. Moreover, the altcoin has deep liquidity to support large institutional volume through different web3 protocols and centralized exchanges.
Bigger Picture
The expected settlement plan for Binance will be a major step forward for the BNB holders who have been technically held hostage by the legal proceedings. According to the latest market data, BNB’s price has gained more than 4 percent in the past 24 hours to trade around $260 on Tuesday. Consequently, the biggest fear of a Binance explosion like FTX has significantly subsided as Bitcoin teases to rally towards $40k soon.
