REGULATION

Binance US's new CEO interviewed: Will introduce compliant derivatives, Coinbase potential akin to Google, Binance to become primary competitor

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Binance US

Former Coinbase Chief Legal Officer Brian Brooks, who resigned as Acting Comptroller of the Currency at the OCC on January 14 this year, will officially take over as the CEO of Binance.US on May 1 after almost a full quarter of vacancy.

Brian Brooks

Brian Brooks served as the Chief Legal Officer of Coinbase from 2018 to March 2020; and from May to January 2021, he was the Acting Comptroller of the Currency at the OCC in the United States, where he championed major crypto-friendly policies:

  • Regulated entities can provide cryptocurrency custody services.
  • Federal banks can offer stablecoin payments, participate in nodes, and run DApps.

In addition, Brian Brooks has frequently expressed support for cryptocurrencies such as Bitcoin and stablecoins in interviews. He once described decentralized finance (DeFi) as "self-driving banks," leading the way in advancing the banking sector and making it easier to regulate.

Binance.US

Brian Brooks will be taking over from Catherine Coley, who has been the CEO of Binance.US since September 2019. Given that Binance.com, the parent company of Binance, cannot offer services to U.S. citizens, Brian Brooks' experience in both politics and business could significantly aid Binance's efforts in the U.S. market, potentially posing a threat to Coinbase.

Following the announcement, Brian Brooks was interviewed by CNBC. When asked about the differences between Binance and Binance.US and regulatory issues, he responded:

These are two completely different companies. Binance.US is set up to comply with U.S. regulations regarding crypto assets. It is clear that there is demand for this type of asset among the U.S. public, which is why I worked to promote regulatory transparency at the OCC: "to enable the public to invest in this innovative and important technology." This is also the goal I will continue to pursue at Binance.US.

Discussion on Recent Bitcoin Volatility

The host then questioned Brian Brooks about the recent volatility in Bitcoin and the reasons for its decline, citing rumors from the U.S. Treasury Department as a possible cause for the recent drop of nearly 20%, which originated from a single tweet. In light of such high volatility in assets, what regulatory aspects does Brian Brooks see in the future?

Brian Brooks responded:

In the past six months, we have seen Google drop a couple of hundred points at times, and of course, we have seen Bitcoin go up and down. However, if you look at the annual returns, Bitcoin's return is much higher than the stock market. Recently, it has been trading between 50,000 and 70,000 for a long time. Compared to the drastic drops of 20% to 30% two years ago, I do not see the so-called drastic volatility.

Brian Brooks emphasized that the crypto industry is building infrastructure, so you will see dramatic fluctuations in crypto assets like early internet concept stocks. However, he believes that the financial system will ultimately be based on these underlying technologies and is currently focusing on regulatory issues instead of short-term fluctuations.

Becoming Coinbase's Main Competitor

Regarding the future development of Binance.US, Brian Brooks believes that the platform is one of the top exchanges in the U.S., but it should do better in derivatives such as margin trading and futures, especially in terms of regulatory licenses, to truly bring value to users.

Finally, the host did not overlook the recent listing of Coinbase, mentioning that Coinbase was once valued at hundreds of billions of dollars. He expressed doubt and asked Brian Brooks if it truly has such great potential, as does Binance.US?

Brian Brooks stated:

The potential is enormous, similar to Google's level. I believe Coinbase will rise over time, and Binance.US will become its main competitor.