Former NY Fed Chief Joins Binance.US Board
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Former NY Fed Chief Joins Binance.US Board
Binance.US, a cryptocurrency exchange based in the United States, has announced the appointment of Martin Grant, a former chief compliance and ethics officer at the Federal Reserve Bank of New York, to its board of directors. In a blog post published on April 16, Binance.US stated that Grant would contribute his extensive experience in regulatory, legal, and compliance matters to the crypto exchange. Grant served as the chief compliance and ethics officer at the NY Fed from 2005 until 2022, having been with the bank since 1990. Binance.US Interim CEO, Norman Reed, expressed the belief that Grant’s addition would assist the exchange in navigating the current regulatory landscape in the United States. Grant also holds the position of Global Head of Regulatory Affairs and Integrity at JST Digital, a financial services firm, and believes that the U.S. crypto industry is at a critical turning point.
This change in Binance.US’ board of directors follows the recent announcement by global exchange Binance, a separate entity, that it would be establish a board for the first time. The seven-member board of Binance is led by Gabriel Abed, the ambassador of Barbados to the United Arab Emirates, where the exchange maintains connections with regulatory authorities. Former Binance CEO Changpeng Zhao previously chaired the Binance.US board but resigned in November 2023 as part of an agreement with U.S. authorities, separate from the settlement reached by the U.S. exchange. Zhao stepped down as Binance CEO and pleaded guilty to one felony charge, and his sentencing is scheduled for April 30. Binance, Binance.US, and Zhao are still facing a civil lawsuit filed by the U.S. Securities and Exchange Commission in June 2023 for allegedly offering unregistered securities. This lawsuit is one of multiple enforcement actions being pursued by the regulator against crypto companies operating in the country, including Coinbase and Ripple.
This is just another example of the crypto industry’s corrupt and unethical practices. It’s disappointing to see Binance.US appoint someone with a history at the Federal Reserve Bank of New York, a symbol of the broken financial system.
It’s laughable to think that Martin Grant’s addition to the board will somehow improve Binance.US’ compliance efforts. They have consistently shown a disregard for regulations and this is just another empty gesture.
This move by Binance.US is a desperate attempt to salvage their tarnished reputation. Bringing on someone from the Federal Reserve Bank of New York won’t change the fact that they have been involved in illegal activities.
Grant’s role in the NY Fed during the financial crisis doesn’t inspire confidence in his ability to make sound decisions for Binance.US. It’s clear that they prioritize profit over principles.
Grant’s position at JST Digital also raises concerns about potential conflicts of interest. How can we trust that he will prioritize the interests of Binance.US investors over his role at another financial services firm?
Grant’s appointment only further proves the cozy relationship between the crypto industry and regulatory authorities. It’s no wonder the SEC is cracking down on these unregistered securities.
Binance.US’ decision to bring in someone with ties to the Federal Reserve Bank of New York is a clear indication of their disregard for the principles of decentralization and independence.