Norman Reed, the former general counsel of Ripple, is stepping in as the interim CEO of Binance.US amid a wave of executive departures and layoffs at the cryptocurrency exchange. As noted by attorney John Deaton, Reed was heavily involved in the 2015 settlement between Ripple and the U.S. Department of Justice, which classified Ripple-linked XRP as a "convertible virtual currency."
His move to Binance.US is seen by some experts as a potential positive development for the beleaguered exchange, even as others express caution.
Deaton's statement
Deaton, a pro-XRP attorney, commented on Reed's appointment via X, formerly known as Twitter. According to Deaton, Reed's role in the 2015 settlement indicates that he brings a deep understanding of regulatory compliance to Binance.US. "I've always maintained that the SEC and the U.S. Government knew more about Ripple than any other company involved in Crypto," Deaton said, suggesting that Reed's expertise could benefit Binance.US as it navigates multiple lawsuits and a regulatory quagmire. The lawyer believes that it could be a "positive sign."
Another attorney, Jeremy Hogan, stated that appointing your general counsel as your CEO does not seem like a growth play.
Deaton also noted that the move could be seen more as a survival tactic for the exchange than as a growth strategy.
Binance's executive exodus
The appointment of Reed comes at a precarious time for Binance.US. Earlier this week, it was announced that CEO Brian Shroder had left the company, and a significant portion of the workforce had been laid off.
The departures coincide with increasing regulatory scrutiny from U.S. agencies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Additionally, Binance.US has faced a probe from the U.S. Department of Justice (DOJ), although no charges have been filed as of yet.