Matrixport: The plea agreement is beneficial for both Zhao Changpeng and Binance, and will help the U.S. approve the Bitcoin spot ETF

ChainCatcher news, according to the latest report from Matrixport, with Zhao Changpeng stepping down and the fine amount being lower than the previously feared $10 billion, Binance is likely to remain one of the top three exchanges in the next 2-3 years. There may be pressure for the company, which has 6,000 employees, to undergo "rationalization adjustments." Although this plea agreement does not include the U.S. SEC, it is a very favorable outcome for Zhao Changpeng and Binance itself. Some may argue that U.S. agencies are cleaning up the industry this year by dismantling banks associated with U.S. cryptocurrency, as two of these banks operated an internal ledger that crypto companies could use around the clock to transfer fiat currency. It can be said that the remaining few (considered) major players are dwindling, and the market is digesting a significant risk-averse event.

Regarding the impact of this regulation, the report analyzes that more exchanges will strengthen their compliance programs and become part of monitoring sharing agreements, which will help in the approval of a spot Bitcoin ETF in the U.S. With this plea agreement, expectations for a spot Bitcoin ETF may have risen to 100%, as the entire industry will be forced to comply with the rules that traditional financial companies must follow. More importantly, the cleansing of this industry will strengthen the case for institutional investors to adopt Bitcoin and may make Bitcoin a safe-haven asset in investors' portfolios.

Institutions are on the rise, and all enforcement actions by U.S. agencies this year are steps in that direction. As the macro environment continues to provide favorable conditions and institutional demand, 2024 is likely to be another strong year for Bitcoin—Zhao Changpeng may return during the next bear market in 2026.