Crypto Isn’t Going Anywhere: Industry Leaders Optimistic Despite Binance Crackdown

Following Binance’s massive $4.3 billion fine and founder and CEO Changpeng “CZ” Zhao’s decision on Tuesday to step down from the company, industry leaders have been reassuring the community that crypto is here to stay, and that it’s likely to come out even stronger.

Among those who have shared their thoughts on the dramatic events is Coinbase’s Chief Legal Officer, Paul Grewal, who said on social media platform X that he sees Binance’s settlement as a catalyst for proactive regulation and clear laws governing crypto.

Grewal pointed to the resilience of the crypto market, saying “crypto isn’t going anywhere,” and instead stressed the need for sensible regulation to ensure secure domestic crypto services will still exist in the future for American consumers.

I’m watching the @binance news, too. While we wait for a DOJ announcement, a reminder: crypto isn’t going anywhere. But to create a thriving cryptoeconomy in the US, we need clear, sensible regulation so American consumers have access to secure domestic crypto services. 1/4

— paulgrewal.eth (@iampaulgrewal) November 21, 2023

Coinbase CEO Brian Armstrong echoed the sentiment, saying on the same platform that Coinbase will continue to operate as a crypto exchange in the US.

He added that the news is a chance to turn a new chapter for the industry, and, like Grewal, emphasized the importance of regulatory clarity.

Since the founding of Coinbase back in 2012 we have taken a long-term view. I knew we needed to embrace compliance to become a generational company that stood the test of time. We got the licenses, hired the compliance and legal teams, and made it clear our brand was about trust…

— Brian Armstrong 🛡️ (@brian_armstrong) November 21, 2023

Despite the optimistic tone set by the Coinbase executives, some also used the occasion to criticize the crypto industry:

Wow, I mean, if you had told me 3 years ago that:

FTX
Binance
BlockFi
Terra
Celsius Network
Voyager Digital
Three Arrows Capital
Gemini Trust
Hodlnaut

And hundreds of other companies were all run by frauds

I would have absolutely believed you

— Chris Bakke (@ChrisJBakke) November 21, 2023

Despite varying opinions, many crypto enthusiasts believe that Binance’s shakeup will ultimately benefit the industry.

Ryan Selkis, founder and CEO of Messari Crypto, described Binance’s settlement as a “derisking” for the exchange, calling it “one of the biggest catalysts we could have in crypto.”

Binance derisking is one of the biggest catalysts we could have in crypto.

+ Crypto is a “real” industry post $4 billion settlement
+ CZ takes a long-needed Miami vacation a la Arthur
+ Market rips higher, ETFs approved in Jan
+ GOP wins 2024 election, crypto laws passed

🫡 CZ

— Ryan Selkis (d/acc)🪳 (@twobitidiot) November 21, 2023

Others offered more humorous takes, with for instance the well-known venture investor and podcast host Jason Calacanis making a joke about CZ’s tweet where he said he might “coach/mentor” startup entrepreneurs now that he is done as CEO of Binance.

“Crypto folks are built different,” Calacanis said.

Lord, give me the confidence to plead guilty to federal charges, pay a $4b+ fine, and have the audacity to offer myself up as an advisor to startups! 🤦😂🫡

Crypto folks are built different https://t.co/NApclzD5Aa

— @jason (@Jason) November 21, 2023