Binance Seeks Early End to US Compliance Monitorship

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Good Morning.

Binance is testing the waters of a friendlier US regulatory climate, moving to cut short the compliance monitorship imposed after its 2023 plea deal.

In Today's Email:

• What Matters: Binance Seeks Early End to US Compliance Monitorship 👀 

• Case Study: Pantera’s $1.1B Solana Bet 💰️ 

• Governance & Features: Polymarket Debuts US Earnings Markets 🇺🇲 

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TOGETHER WITH

0G Labs: Building a Global AI Ecosystem

0G, the world’s first decentralized AI operating system, is not just building technology, it is also building a global ecosystem. Nearly 300 investors have joined its cap table, from Samsung Next and Alumni Ventures to Bankless Ventures and Blockchain Builders Fund. 

Strategic partnerships already span industries and ecosystems, with names like Alibaba, Google, Quicknode, LayerZero, Chainlink, Optimism, Cosmos, and Solana.

Developers are choosing 0G as their base layer. Jaine is creating decentralized trading, Zerrow is building lending markets, Gimo is offering liquid staking, AIverse is powering digital worlds, Credible is bringing onchain credit, Beacon is building privacy solutions, and Kult Games is creating next-generation gaming experiences.

With over 8,000 validators and 5,000 storage nodes already live, 0G has become the backbone of decentralized AI.

WHAT MATTERS

Binance Seeks Early End to US Compliance Monitorship

State of play: Binance is reportedly close to a deal with the US Department of Justice to drop its court-mandated independent compliance monitor ahead of schedule, Bloomberg reports.

• The monitor was imposed in 2023 when Binance and its former CEO Changpeng Zhao pleaded guilty to money-laundering and sanctions violations, Binance and CZ agreed to pay $4.3B in fines and accept strict oversight.

The DOJ’s talks come as the Trump administration signals a softer stance on crypto, urging agencies to focus on clear criminal cases rather than imposing regulatory frameworks.

• Binance’s monitorship, led by Forensic Risk Alliance, was set for three years, while the Treasury’s FinCEN imposed a separate five-year monitor.

• It is unclear whether FinCEN is also considering changes.

• Since the plea deal, new CEO Richard Teng has expanded the exchange’s compliance efforts, reportedly spending $200M on controls in 2024.

Why it matters: Ending the DOJ monitorship early would ease costs and help Binance regain access to markets it lost during the probe.

Our take: If the DOJ eases Binance’s monitorship early, it signals a friendlier US regulatory climate and a maturing view of crypto compliance. It shows that heavy oversight can be temporary when firms demonstrate real reforms.

For builders and investors: Expect greater confidence in US crypto markets and a faster path for exchanges to re-enter key jurisdictions. This could spur more capital inflows and encourage new projects to target the US market.

CASE STUDY

Pantera’s $1.1B Solana Bet

Pantera Capital founder Dan Morehead told CNBC that Solana is the firm’s largest crypto position with $1.1B invested, about 23% of its $4.7B assets.

• Morehead expects only a handful of major Layer 1 blockchains to thrive long term, naming Bitcoin, Ethereum and Solana.

• He believes Solana’s scale, handling up to 9B transactions a day, positions it to outperform over time, even as Bitcoin could reach $750,000 within five years.

• Separately, Pantera is leading a $500M private investment to launch a Solana treasury company, giving retail investors rare brokerage account access to SOL.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 500 crypto VC individuals 👇

INSIGHTS

Pumpfun Revenue Surges Past Hyperliquid

Pumpfun generated $3.38M in daily protocol revenue, edging past Hyperliquid’s $3.06M. Pumpfun has rebounded sharply after a steep drop earlier this year when revenue fell 96% from a $6.7M January peak.

• Pumpfun’s comeback is driven by an aggressive buyback plan for its native PUMP token.

• Since July, it has repurchased $97.4M worth of PUMP, about 6.67% of its circulating supply, and now allocates 100% of daily revenue to buybacks.

• The token’s price has jumped nearly 54% since the program began, marking Pumpfun’s strongest revenue day since February.

FEATURES & GOVERNANCE UPDATE

Polymarket Debuts US Earnings Markets

Polymarket, freshly cleared to operate in the US, has introduced prediction markets for publicly traded company earnings in partnership with trader social platform Stocktwits.

• The new category lets users bet on whether firms like FedEx and crypto exchange Bullish will beat analyst EPS estimates, blending Polymarket’s real-time probability pricing with Stocktwits’ investor discussions.

• The move follows Polymarket’s recent CFTC clearance and comes as the platform reportedly explores a $9–$10B valuation.

• Its most active market remains the Fed’s September rate decision, where traders see a 91% chance of a 25 basis point cut.

Other notable feature updates:

• Rabby Wallet launched Rabby Perps.

• Sei integrated Chainlink Data Streams.

• OpenSea announced three major updates.

• Project 0 launched as a DeFi-native prime broker.

• Ethena Labs announced a strategic investment and partnership with Based.

QUICK BITES

• Eric Trump defends UAE-Binance deal.

• Pumpfun daily revenue tops Hyperliquid.

• US and UK to deepen crypto collaboration.

• Circle launches USDC natively on Hyperliquid.

• Coinbase considering launch of Base Network token.

• Standard Chartered's VC arm plans $250M digital asset fund.

• MoonPay buys crypto payments startup Meso to expand global reach.

• Binance in talks with DOJ over dropping independent compliance monitor.

• Pantera founder says Solana is firm’s biggest crypto bet with $1.1B position.

• Polymarket brings prediction markets to company earnings after US clearance.

NOTEWORTHY READS & MEME

• Mide’s read on Ritual, Intelligence Economy

• Coinmetrics’s read on Shake Up in the Stablecoin Sector

• Delphi Digital’s read on Somnia:the Future of Onchain Applications

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.