The crackdown on crypto firms by the United States Securities and Exchange Commission (SEC) appears to have severely affected Binance’s business. During the past few weeks, the crypto exchange reportedly fired over 1,000 employees and slashed some benefits.
According to Binance, the “current market environment and regulatory climate” have caused a decline in profits, suggesting more cuts may be in the works. A spokesperson told Cointelegraph the firm would consider scaling back on “certain products, business units, staff benefits and policies” in response to business and regulatory concerns.
Binance has yet to face the courts and the 13 charges brought against it by the SEC, as well as the outcome of an investigation by the U.S. Justice Department targeting its activities and executives.
Despite cloudy prospects ahead, Binance is still comfortably the most popular centralized crypto exchange in the world, holding assets worth over $63 billion. A token breakdown by DefiLlama shows that the majority of assets held in Binance include Tether (USDT) (27.55%), Bitcoin (BTC) (26.95%), BNB (BNB) (12.82%), and wrapped Ether (10.08%).
In remarks on Binance’s anniversary on July 14, the exchange’s CEO Changpeng Zhao recalled that the company’s journey was “never all smooth sailing.”
This week’s Crypto Biz looks at Binance’s ongoing efforts to curb declining profits, Ripple’s expectation that U.S. banks may soon adopt XRP (XRP) and the first signs of venture capital returning to crypto.
Ripple CLO says court ruling could encourage banks to adopt XRP
Stu Alderoty, chief legal officer of Ripple Labs, believes that U.S.-based banks may turn to XRP for cross-border transactions following a recent court ruling. “Hopefully, this quarter will generate a lot of conversations in the United States with customers, and hopefully, some of those conversations will actually turn into real business,” he said during an interview. With the label of “security” seemingly no longer hanging over XRP, partnerships between Ripple and banks dampened by the SEC lawsuit could find new life. Bank of America had been eyeing the blockchain firm in 2019, and American Express first partnered with Ripple in 2017.
#NEW: Chairmen @PatrickMcHenry and @CongressmanGT issue a statement regarding the court ruling in SEC v. Ripple and the need for legislative clarity in the digital asset ecosystem to prevent further uncertainty in our financial markets.
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