WSJ: Binance tried to hire Gary Gensler as a consultant

According to reports, according to the Wall Street Journal (WSJ), the cryptocurrency trading giant Binance hopes to hire Gary Gensler as an adviser several years before he becomes the chairman of the Securities and Exchange Commission. According to the Wall Street Journal citing a large amount of information from the employees of Coin An, Gensler refused. The Wall Street Journal said that in 2018 and 2019, Gensler worked hard to let Gensler join when he was a professor at MIT. These efforts included a meeting with Gensler, Ella Zhang, and Harry Zhou, the former head of the venture capital department of Qian’an, in October 2018. Zhou was working for a company funded by Binance. According to the Wall Street Journal, Zhou wrote in a chat message at that time: “I observed that although Gensler refused to serve as a consultant, he was generous in sharing the licensing strategy.”

Interpretation of this information:

The Wall Street Journal reported that Binance, a cryptocurrency trading company, attempted to hire Gary Gensler, who was a professor at the Massachusetts Institute of Technology (MIT) at the time, as an adviser. Gensler is now the chairman of the Securities and Exchange Commission (SEC) in the US government. The company reportedly made attempts to bring Gensler onboard back in 2018 and 2019, but Gensler ultimately declined the offer.

Binance’s efforts to hire Gensler were reported to be significant, involving meetings and conversations with various high-level executives. These executives included Ella Zhang, a member of Binance’s management team, and Harry Zhou, who previously led Qian’An, a venture capital department, and who had been working for a Binance-funded company at the time. According to the report, Zhou communicated with Binance’s executives via chat and mentioned that while Gensler declined the offer to work as a consultant, he was generous in sharing knowledge about a licensing strategy.

It remains unclear what exactly the licensing strategy was, but this information suggests that Binance may have been seeking Gensler’s advice regarding regulatory compliance. The cryptocurrency industry has faced intense scrutiny from regulatory organizations due to concerns regarding fraud, lack of transparency, and potential illegal activities. However, Gensler has previously spoken supportively of cryptocurrencies while emphasizing the importance of investor protection and regulation.

The fact that Binance attempted to hire Gensler as an adviser before he became the chairman of the SEC raises questions about the company’s motivations and intentions. It is important to note that regulatory compliance is essential for any company operating in the cryptocurrency industry, particularly those that handle significant amounts of user funds. By hiring a former professor like Gensler, who had knowledge and experience in the regulatory space, Binance may have been looking to improve its compliance strategy.

Overall, the report suggests that Binance was willing to take significant steps to solidify its regulatory compliance strategy. As the SEC continues to put a spotlight on the cryptocurrency industry, companies such as Binance will need to ensure that they comply with regulations to avoid penalties or legal action. The fact that they attempted to bring on an experienced individual such as Gensler as an advisor demonstrates a commitment to regulatory compliance that could benefit the company and its users in the future.