Binance.US Restores USD Deposits and Withdrawals After Nearly Two-Year Suspension
In a significant move for its U.S. operations, Binance.US has reopened U.S. dollar deposits and withdrawals, marking the first time users can access fiat services since June 2023. This development follows a prolonged suspension triggered by the U.S. Securities and Exchange Commission’s (SEC) lawsuit against the crypto exchange.
Fiat Transfers Resume After Regulatory Hurdles
Starting Wednesday, eligible customers can once again access zero-fee ACH bank transfers for deposits and withdrawals, with a gradual rollout planned for all users, Binance.US announced in a blog post.
Norman Reed, Interim CEO of Binance.US, celebrated the milestone:
"We are thrilled to restore fiat rails as we accelerate with increased momentum in the new year. This marks one of the most important chapters for Binance.US since July 2023, when we were forced to operate as a crypto-only platform. We’ve been looking forward to the day we could offer full USD services again."
SEC Lawsuit and Market Share Decline
Binance.US suspended fiat transactions in June 2023, shortly after the SEC filed a lawsuit against Binance, Binance.US, and co-founder Changpeng Zhao, alleging violations of securities laws. This legal pressure strained the exchange’s banking relationships, forcing the platform to operate solely with cryptocurrencies.
The exchange’s market share plummeted from 10% to just 0.1% of U.S. dollar-supported crypto trading volume by January 2024, despite continued support for 160+ cryptocurrencies. The turmoil also led to leadership changes, including the departure of CEO Brian Shroder in September 2023 and a one-third reduction in staff.
Legal Pause and Renewed Optimism
The SEC case remains ongoing, but a Washington D.C. district judge recently granted a 60-day stay on February 13, following a mutual request from both parties. The pause allows time for the SEC's new crypto task force to develop a clear regulatory framework, contrasting with the regulation-by-enforcement approach under former SEC Chair Gary Gensler.
Dan Wong, General Counsel at Binance.US, emphasized the platform's renewed focus on compliance and user protection:
"As a licensed and regulated U.S. crypto exchange, the relaunch of USD services gives customers a safe, reliable, and convenient way to transfer funds and access crypto."
Meanwhile, Binance CEO Richard Teng expressed optimism about the crypto industry’s "fresh reset" under the pro-crypto Trump administration, though he noted that Binance is still awaiting regulatory clarity before finalizing future plans.