CZ makes a high-profile return, Binance plans the path to "rebirth" in the United States

According to Bloomberg, after receiving a presidential pardon, Binance co-founder CZ is once again becoming a focal point in the crypto world. He has recently praised President Trump’s stance on cryptocurrencies and publicly stated that he is “fully committed to helping the US become the crypto capital.” Meanwhile, Binance is exploring possible plans to restart its US branch, Binance.US, including a potential capital restructuring to dilute CZ’s controlling stake, aiming to clear the biggest hurdles in obtaining licenses across states. However, this path back is fraught with challenges, involving complex regulatory battles, internal power balances, and fierce market competition.

CZ’s Return: From “Retreat” to Frontline Driver

Although CZ no longer holds any official position at Binance following his 2023 plea agreement, his influence has never waned. Recently granted a presidential pardon, he has become more active in stepping into the spotlight, with his remarks clearly outlining a strategic focus: placing the US market at the core of Binance’s future development. At Binance Blockchain Week in early December, CZ emotionally stated that he “cried when stepping down as Binance CEO,” and declared that his “entire intention is to help the US become the crypto capital,” describing the US as “a new frontier” for Binance.

This high-profile stance is closely tied to shifts in the US political climate. Since Trump’s second term began, the US government has been actively pushing to make the US the “global crypto capital.” The attitudes of regulators like the Federal Reserve have also undergone a “fundamental shift,” moving from cautious observation to strategic adoption, and rescinding a series of restrictive policies. CZ’s comments are a positive response to this regulatory “tailwind.”

However, CZ’s return also signals complex internal dynamics. At the same event, Binance’s other co-founder and CZ’s partner, He Yi, was promoted to co-CEO alongside Richard Teng, and stated that CZ has “retired.” Yet, CZ’s central role at the event, along with his continued substantial wealth through shareholdings, makes the “retirement” claim seem insincere. This arrangement appears designed to meet formal compliance distancing requirements while maintaining influence behind the scenes, making communication with US regulators delicate.

Restarting US Operations: Capital Restructuring and Licensing Battles

Reviving Binance.US is central to Binance’s US strategy, but the primary obstacle is CZ himself. According to insiders, the explored plan includes a capital restructuring of Binance.US, with the global entity (Binance.com) acquiring some or all of CZ’s shares, thereby reducing his ownership stake to alleviate regulatory concerns about his “controlling investor” status. This move aims to facilitate the appointment of new leadership, pursue growth strategies, and leverage political connections in Washington.

However, even after adjusting the ownership structure, Binance.US faces a tough “licensing battle.” Its website currently shows it cannot operate in over a dozen states and territories, including key markets like New York. Duke University legal and financial policy expert Lee Reiners noted, “For them, obtaining a money transmission license will be a huge challenge, especially in states controlled by Democrats.” These states may adopt a more cautious attitude toward their applications. One of Binance’s hopes rests on a market structure bill still stalled in Congress; if passed, it would establish a federal licensing system, but its prospects remain uncertain.

Binance.US Restart Core Challenges Overview

Regulatory Compliance Challenges: CZ, as the controlling person, is viewed by multiple state regulators as a primary obstacle; Binance.US is currently barred from operating in over twelve states and territories; the company must still adhere strictly to all restrictions in the 2023 plea agreement.

Market Competition Challenges: Its US market share has sharply declined from a peak of about 35%; competitors like Coinbase have established solid user bases and brand trust; regaining user trust will take time and significant differentiation.

Political Time Window: The currently relatively friendly federal regulatory environment could change with the 2026 midterm elections; the outlook for key crypto market legislation passing Congress remains uncertain, with many variables.

Market Impact and Future Challenges: Opportunities and Risks

If Binance successfully restarts its US operations, its historic market strategy—zero or extremely low fees—may make a comeback, likely causing concern among current dominant players like Coinbase. A aggressive pricing strategy by Binance could trigger a new round of market share battles, benefiting traders in the short term but increasing industry competition.

However, Binance’s “US revival” plan faces a tight time window. The current relatively friendly regulatory climate could shift as Democratic influence in the midterm elections strengthens or if the White House changes hands. Washington lobbyists initially predicted the market structure bill would pass by the end of this year, but they are no longer certain. Analysts note that reaching a compromise that satisfies bipartisan political interests while addressing both traditional finance and crypto industry concerns will be highly challenging.

A bigger challenge is that even if federal issues are resolved, state regulators—especially those cautious about Binance’s past record—may set high thresholds. Rebuilding a market share that once hit rock bottom requires more than licenses and low prices; it involves restoring trust among users and partners, which is a much longer process than simply obtaining permits.

Internal Balance and External Alliances: New Leadership and Wall Street Partners

Recent leadership changes at Binance aim to send signals of stability and continuity. He Yi, as co-CEO, has taken a front-facing role, hosting events, guiding strategy, and revitalizing growth narratives. The other co-CEO, Richard Teng, a former regulator, has primarily handled government relations during the company’s crisis responses over the past two years. This “internal-external” division of roles appears balanced, but He Yi’s close relationship with CZ complicates Binance’s efforts to demonstrate distance from CZ.

Meanwhile, Binance is actively seeking alliances with traditional Wall Street financial giants, notably deepening ties with the world’s largest asset manager, BlackRock. The two have already collaborated, such as institutional use of BlackRock’s tokenized money market fund on Binance. Reports indicate discussions to deepen financial cooperation, including developing more products and potential revenue-sharing arrangements. Partnering with a financial giant like BlackRock not only provides valuable credibility but also is key to accessing institutional clients and penetrating the US financial system.

Additionally, Binance is expanding its connections with other politically connected crypto entities, such as World Liberty Financial, founded by members of the Trump family. These moves, some occurring before CZ’s pardon, suggest Binance is actively adjusting its posture to better fit a more crypto-friendly political environment.