As of February 19, 2025, Binance.US has officially resumed USD services for its customers in the United States, marking the end of a nearly 19-month period during which these services were suspended. This development allows eligible users to once again deposit and withdraw U.S. dollars via ACH bank transfers with zero processing fees, purchase cryptocurrencies using bank transfers, and trade USD pairs. The rollout of these services began on February 19 and is being phased in gradually over the following days to ensure all eligible customers regain access.
The restoration follows a challenging period for Binance.US, which suspended USD transactions in June 2023 due to regulatory pressures, including a lawsuit from the U.S. Securities and Exchange Commission (SEC) alleging compliance failures. The company was forced to operate as a crypto-only platform during this time, a move interim CEO Norman Reed described as a significant setback. However, recent regulatory clarity and efforts to secure compliant banking partners have enabled Binance.US to reinstate these fiat services. At launch, trading is supported for 10 USD pairs, including BTC/USD, ETH/USD, and SOL/USD, with plans to expand further.
Regulatory pressures refer to the challenges and constraints imposed on businesses, like Binance.US, by government agencies and laws designed to oversee and control their operations. In the context of cryptocurrency exchanges like Binance.US, these pressures often stem from efforts to ensure compliance with financial regulations, protect consumers, and prevent illegal activities such as money laundering or fraud. Let me break it down based on what happened with Binance.US and the broader crypto industry:
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Binance.US, the American arm of the global cryptocurrency exchange Binance, faced significant regulatory scrutiny starting in 2023. The key event was a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in June 2023. The SEC alleged that Binance.US (and its parent company) violated securities laws by offering unregistered securities—essentially claiming that certain cryptocurrencies traded on the platform should be treated as regulated financial products rather than just digital assets. The SEC also accused the exchange of failing to properly register as a broker-dealer and of commingling customer funds, which raised concerns about financial transparency and user safety.
At the same time, Binance.US encountered issues with its banking partners. The crypto industry as a whole has faced a phenomenon dubbed “Operation Choke Point 2.0” by some observers—a term suggesting that U.S. regulators were pressuring banks to cut ties with crypto firms, making it hard for exchanges to maintain USD fiat services. For Binance.US, this led to the suspension of USD deposits and withdrawals in June 2023, as their banking partners either withdrew support or imposed stringent conditions due to regulatory risks.
Securities Regulation: The SEC argued that many tokens on Binance.US qualified as securities under U.S. law (based on the Howey Test, which defines an investment contract). If true, Binance.US needed to register these offerings and comply with strict disclosure and investor protection rules—something it allegedly hadn’t done.
Anti-Money Laundering (AML) and Know Your Customer (KYC): Crypto exchanges are subject to the Bank Secrecy Act (BSA), enforced by the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). Regulators expect robust systems to verify customer identities and monitor transactions for suspicious activity. Any perceived lapses can lead to penalties or operational restrictions.
Banking Relationships: Banks, wary of regulatory backlash, often hesitate to service crypto firms. After high-profile incidents like the FTX collapse in 2022, U.S. regulators signaled heightened oversight, making banks cautious about facilitating fiat on- and off-ramps for crypto exchanges like Binance.US.
State-Level Rules: Beyond federal oversight, Binance.US had to navigate a patchwork of state regulations. For instance, it withdrew from certain states or faced bans (e.g., New York due to the BitLicense requirement) where compliance was too costly or complex.
These pressures forced Binance.US into a crypto-only mode for nearly 19 months, limiting its ability to serve U.S. customers with USD functionality. The company had to lay off staff, scale back operations, and work tirelessly to find new banking partners willing to operate within the regulatory framework. The SEC lawsuit also damaged its reputation and market position, contributing to a reported $1 billion loss in assets under management during this period.
By February 2025, Binance.US managed to alleviate some of these pressures. The broader Binance entity settled with U.S. authorities in late 2023, paying a $4.3 billion fine and agreeing to stricter compliance measures, which likely paved the way for Binance.US to regain trust. Additionally, a shifting regulatory tone—possibly influenced by growing crypto adoption and political changes—encouraged banks to re-engage. Binance.US secured new banking partners and demonstrated compliance with SEC and FinCEN expectations, enabling the resumption of USD services on February 19, 2025.
Regulatory pressures on crypto firms like Binance.US reflect a tension between innovation and oversight. Governments aim to protect markets and consumers, but the crypto industry often argues these rules stifle growth. The reinstatement of USD services suggests Binance.US successfully navigated this landscape, though ongoing vigilance will be required as regulations evolve. Does that clarify the regulatory pressures for you? If you’d like deeper details on any specific aspect—like the SEC lawsuit or AML rules—let me know!
This move is seen as a significant step for Binance.US, reflecting a shift in the U.S. regulatory environment and the company’s commitment to compliance, as highlighted by both Reed and General Counsel Dan Wong. The return of USD services is expected to enhance user convenience and potentially boost the platform’s growth in the American market.