Executives at Binance reportedly sat down with Treasury Department officials in March to discuss the possibility of relaxing the US government’s regulatory scrutiny of the world’s largest crypto exchange.

Citing people familiar with the matter, the Wall Street Journal reports that Binance wants the Treasury Department to remove one of the two monitors that oversee the exchange.

The US government is keeping a close eye on Binance after it pleaded guilty to having engaged in anti-money laundering (AML), unlicensed money transmitting and sanctions violations.

The Treasury Department appointed a monitor to ensure that Binance complies with anti-money laundering laws, but a spokesperson for the exchange says that monitors led to “inefficient and costly burdens.” 

The report says that during last month’s meeting, Binance chief executive Richard Teng and Chief Legal Officer Eleanor Hughes asked Treasury officials to remove the monitorship, or reduce its duration and scope. 

Binance’s executives are said to be optimistic that the Trump administration will greenlight the request. 

According to WSJ, the meeting took place after Binance and representatives from the Trump family-backed crypto venture World Liberty Financial held discussions to list the project’s dollar-pegged stablecoin, USD1, on the crypto trading platform.

A spokesperson for World Liberty Financial says that the company is aiming for USD1 to be “accessible for millions globally.” 

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Attorneys for the U.S. Securities and Exchange Commission and Binance asked a federal judge on Friday to continue a pause in the regulator’s case against the crypto exchange for another two months, citing “productive discussions.”

The SEC sued Binance in 2023, alleging the exchange — alongside its U.S. affiliate and executives such as former CEO Changpeng Zhao — violated federal securities laws by operating as an unlicensed clearing agency, broker and exchange. The SEC also alleged commingling and that Binance.US’s trading volume was manipulated. In February, after U.S. President Donald Trump retook office and appointed Commissioner Mark Uyeda as acting agency chair, the regulator asked for a 60-day pause in the case, which was set to expire on Monday. The SEC pointed to a newly created crypto task force aiming to draft clearer guidance around how securities law might apply to digital assets as part of its explanation for the requested pause.

In Friday’s filing, the attorneys involved said the discussions included “how the efforts of the crypto task force may impact the SEC’s claims,” and requested another 60 days’ pause.

“In light of these continued discussions and the time required for the staff to seek authorization from the Commission as necessary to approve any resolution or changes to the scope of this litigation, the SEC requested that the Defendants agree to continue the current stay for an additional 60 days, and the Defendants agreed that continuing the stay is appropriate and in the interest of judicial economy,” the filing said.

Wall Street Journal published a report stating that Binance executives met with US Treasury officials to discuss crypto regulatory oversight and negotiate for their re-entry into the US market. In return, Changpeng Zhao (CZ) would provide the US DoJ executives with evidence related to Tron founder Justin Sun. Responding to it, Sun said that he sees CZ as his mentor and that he has nothing to hide from the authorities.

Justin Sun Addresses Rumors, Affirms Trust in Binance CEO

Responding to the circulating rumors, Tron founder Justin Sun emphasized his strong ties with Binance CEO Changpeng Zhao (CZ) and the U.S. Department of Justice (DOJ). In a message on the X platform, the Tron founder wrote:

“CZ is both my mentor and a close friend—he has played a crucial role in supporting me during my entrepreneurial journey”.

Sun praised Zhao’s leadership and ethics, calling them “the highest standard I strive to follow as a founder. He also highlighted TRON’s collaborative relationship with the DOJ, describing the department as “one of T3FCU’s closest and most trusted partners”.

The Tron founder assed that the joint efforts between the two parties have focused on protecting global users through various cases. “Whether it’s CZ or our partners at the DOJ, we maintain direct, honest communication at all times. I have full trust in each and every one of them,” Sun affirmed.

Additionally, Justin Sun said that he’s very optimistic about favourable crypto policy initiatives under U.S. President Donald Trump. Also, sharing optimism about TRON’s prospects, stating, “As the President’s earliest crypto choice, TRX is set to be one of the beneficiaries of this success. ALL IN USA!”

Is WSJ On A Hit Job Against CZ?

Just ahead of the WSJ report, Binance chief Changpeng Zhao shared on X platform, exposing the media platform. He wrote: “Multiple people have told me again WSJ is writing another baseless hit piece about me”.

Last month, a WSJ report also stated that the Trump family was eyeing a stake deal in Binance.US, in return for pardoning CZ from his prison term. CZ later denied the allegations, calling them baseless.

In another development on Friday, the U.S. Securities and Exchange Commission (SEC) and Binance jointly requested a federal judge to extend the pause in their ongoing legal case by an additional 60 days.

The motion comes after both parties described recent talks as “productive discussions,” with the extension intended to allow more time for continued deliberations and potential resolution.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.