Expand beyond crypto trading — or fall behind

Binance is attempting a return to the U.S. crypto market, and its strategy is clear: evolve beyond basic trading or risk being left behind.

The effort is now being led by Stephen Gregory, a compliance veteran who was named CEO of Binance.US in March, succeeding Norman Reed, who remains an adviser. Gregory previously held leadership roles at Currency.com, Gemini and CEX.io, bringing a regulatory-focused background to a company trying to reset its standing in the U.S.

That reset follows a turbulent period for Binance globally. The company faced lawsuits from both the Securities and Exchange Commission and the Department of Justice, though the SEC dropped its long-running case last summer. Binance was also criminally charged with violating sanctions and money-transmitting laws, agreeing to pay $4.3 billion in what U.S. authorities described as one of the largest corporate penalties on record.

Founder Changpeng “CZ” Zhao pleaded guilty to violating the Bank Secrecy Act and agreed to pay a $50 million fine and step down as CEO. He was later pardoned by former President Donald Trump. Richard Teng, a former regulator in Abu Dhabi, took over as CEO of Binance’s global business.

Against that backdrop, Binance.US is now trying to rebuild.

Gregory’s plan centers on expanding beyond spot crypto trading into new areas such as derivatives and prediction markets, as the company looks to regain market share lost to competitors like Coinbase (COIN) and Kraken. At its peak in 2022, Binance.US held roughly 20% of the U.S. market. That number is currently at nearly zero, according to CoinDesk Indices data.

“Prediction markets are super hot. Everybody’s talking about that,” Gregory said, pointing to one area under consideration.

The push reflects a broader shift in the industry. As trading fees compress and products become more similar, exchanges are searching for new ways to differentiate. Coinbase has long been working on transitioning to an “everything exchange” that offers services that go way beyond crypto trading. Gregory expects that to continue and for crypto to follow a path similar to equities, where commissions largely disappeared and firms had to find alternative revenue streams.

For Binance.US, that means building a broader platform. In addition to spot trading, the company is exploring retail derivatives — long available on offshore exchanges — as well as event-based markets tied to real-world outcomes.

“Crypto companies can offer prediction markets… retail derivative products… and go into different customer verticals,” Gregory said.

Still, product expansion alone will not be enough. The company must also rebuild trust with both regulators and users.

While Binance.US was not directly charged in the same way as its global affiliate, its association with the broader Binance brand brought scrutiny and operational constraints. Gregory said the U.S. entity now operates independently, with its own governance and a stronger compliance framework.

“We’ve really built a very, very strong compliance program,” he said.

That effort is central to the company’s turnaround. Gregory described a chain reaction: restoring trust could bring assets back onto the platform, increase trading volumes and help rebuild liquidity.

Liquidity is a key advantage for Binance globally, where the exchange remains one of the largest trading venues. Replicating that depth in the U.S. could help Binance.US compete more effectively.

“The best customer protection is competition,” Gregory said.

The challenge is timing. Regulatory clarity in the U.S. remains uncertain, and rivals have strengthened their positions while Binance.US retrenched.

For now, the company is betting that a broader product suite—combined with a compliance-first approach—can help it re-enter the conversation in the world’s largest crypto market.