Sources: Binance.US will not be able to grow unless Zhao Changpeng sells shares or resolves regulatory issues

ChainCatcher news reports that, according to sources, the relationship between Zhao Changpeng and Binance.US, along with the current regulatory environment, will pose obstacles to the company's development.

Currently, the company has proposed three solutions. Solution one: continue to implement growth initiatives as planned. However, this requires Zhao Changpeng to resolve his regulatory issues with the U.S. Securities and Exchange Commission (SEC) by either selling all his shares in Binance.US or placing them in a blind trust; Solution two: moderately reduce the company's burn rate while investing in the platform. This would allow for investments in certain platform upgrades, such as sub-account features and AWS/infrastructure optimization. However, this solution requires investors to be willing to invest in the company during the current bear market; Solution three: go dormant until there is a substantial improvement in the company's situation. This would significantly reduce the burn rate while maintaining normal business operations and licenses. If Zhao Changpeng can improve the regulatory situation or if Congress passes some form of regulation, Binance.US may continue its growth plans after the dormancy period.

Previous report indicates that Binance.US has laid off one-third of its staff, and CEO Brian Shroder has departed, temporarily replaced by Chief Legal Officer Norman Reed.