Binance.US leaves Blockchain Association to form its own lobby team

Binance’s American arm, Binance.US, announced that left the Blockchain Association. That’s because the company is creating its own team in Washington to engage with lawmakers on crypto policy.

The Blockchain Association is an organization dedicated to improving the public policy environment for cryptocurrencies.

As a Binance spokesperson highlighted, the time has come for the company to a clear voice with significant impact on political debates on cryptocurrencies in Washington:

“We are excited to establish our own Government Affairs team in DC to actively engage in direct and constructive dialogue with US policymakers on smart regulation that increases clarity and trust, enabling American innovation and leadership to flourish in cryptocurrencies,” a Binance.US spokesperson told Cointelegraph.

Misaligned values

Meanwhile, a source close to Binance told CoinDesk that the exchange has made a big investment in the Blockchain Association.

According to the source, Binance executives “negotiated in good faith” to increase Binance.US’ role within the group.

But after several conversations, Binance concluded that the values, goals and standards were not fully aligned.

“The resources we would have dedicated now will be reallocated to efforts consistent with Binance.US’ political agenda in Washington and state capitals across the country,” the source said.

Blockchain Association wishes Binance luck

Binance.US joined the Blockchain Association in August 2020. Shortly thereafter, Coinbase, the largest US cryptocurrency exchange, left the association.

The Blockchain Association, which claims to have 80 members, wished Binance.US luck:

“The Blockchain Association wishes Binance.US good luck building its Washington operation. We will continue to build on a strong track record in 2022 to advance the shared goals of the cryptocurrency ecosystem and ensure the US remains at the forefront of technological innovation,” said Kincaid, a spokesperson for the Blockchain Association.

According to Michael Fasanello, chief compliance officer at cryptocurrency firm LVL, Binance.US’s – and Coinbase’s – departure from the association “reflects internal leadership misalignment.”

According to him, the crypto sector it is not a one-size-fits-all environment from a political and regulatory perspective.

“So different businesses will have different wants and needs. They are unlikely to be the only two defections from the Blockchain Association.”