Binance, CZ settlement with US DOJ ‘bullish for Bitcoin ETF,’ crypto community says

Many on Twitter compared the Binance settlement with the U.S. Department of Justice to the deal with BitMEX crypto exchange, whose then-CEO was also forced to step down.

The crypto community on social media has greeted the news of the deal between Binance, CZ and the United States Department of Justice (DOJ) mostly positively, hoping it removes one of the last remaining obstacles before the long-awaited approval of a spot Bitcoin ETF.

The $4.3 billion settlement between the U.S. and the world’s largest crypto exchange, Binance, for violating U.S. anti-money laundering laws includes a plea deal whereby the former CEO Changpeng “CZ” Zhao, has agreed to step down as the CEO of the exchange.

The news of the deal and CEO’s departure led to a market correction that saw some $175 million worth of leveraged crypto positions liquidated, while close to $1 billion in crypto assets flowed out of the crypto exchange.

Apart from a slight market correction, most in the crypto community saw the settlement with the DOJ and the plea deal for CZ as a big win for the exchange and the crypto industry. Many critics had previously claimed that the U.S.’s pursuit of Binance would end the crypto exchange’s rein.

Many others called Binance’s settlement with the DOJ the last step before the U.S. Securities and Exchange Commission approves a Bitcoin exchange-traded fund (ETF). On the whole, the crypto community sees the deal as a win-win scenario for the crypto ecosystem and a bullish catalyst for the next bull run.

Not everyone in the crypto community was as bullish on the Binance-DOJ settlement. Some commented that the crypto community is still awaiting the action from the Securities and Exchange Commission and that the SEC is likely to be a harder battle, as it refuses to settle with Binance along with other agencies.

However, the SEC lawsuit is a civil one, and analysts believe that the DOJ settlement means that Binance and the crypto industry have removed the biggest obstacle to the launch of a bull market.

A few others compared Binance’s settlement to the BitMEX exchange settlement, in which the then-CEO Arthur Hayes pleaded guilty to violating anti-money-laundering laws and stepped down as the CEO. He was later sentenced to two years probation, avoiding a possible prison term of six to 12 months.

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