Binance Coin (BNB), the native token of the world’s largest crypto exchange by trading volume, Binance, surged to a new all-time high on Tuesday, driven by speculation surrounding a potential agreement between Binance and the US Department of Justice (DOJ).
This development comes in the wake of ongoing discussions regarding compliance monitoring requirements tied to Binance’s significant $4.3 billion settlement related to allegations of insufficient measures to prevent money laundering.
According to a report by Bloomberg, the crypto exchange is negotiating with federal prosecutors over the possibility of eliminating a key oversight condition that mandates the retention of an external compliance monitor.
Sources familiar with the confidential discussions indicated that a successful negotiation could lead to a notable shift in the Department of Justice’s approach to independent oversight, particularly as the agency has already started to reduce the number of monitors initially appointed during the Biden administration.
Under President Donald Trump’s administration, the US Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), have been among the regulators shifting their stance towards digital assets.
For instance, the SEC has opted to drop enforcement cases against Coinbase, Uniswap, Robinhood, and Binance. This comes after a harsh crackdown on the industry over the past couple of years, which resulted in the resignation of the exchange’s former CEO, Changpeng Zhao (CZ).
The potential deal between Binance and the US Department of Justice has generated considerable demand for BNB tokens, contributing to the altcoin’s price rally which surpasses growth of 12% on the monthly time frame.
In contrast, the broader digital asset prices have seen continued consolidation with Bitcoin (BTC) as the perfect example, consolidation for the past two weeks below all-time high levels of $124,000 reached last August.
Following the news, BNB reached a high of $956. It is currently trading at $954 and still positioned to capitalize on the growing momentum for the exchange’s native token.
Featured image from DALL-E, chart from TradingView.com
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