Binance and CZ’s settlement with US Department of Justice is “optimistic for Bitcoin ETF,” says crypto community

The crypto social media community has largely responded positively to news of the deal between Binance, Changpeng “CZ” Zhao and the US Department of Justice (DOJ), hoping it will remove one of the last remaining obstacles before long-awaited approval a spot Bitcoin exchange traded fund (ETF).

The $4.3 billion settlement between the Justice Department and the world’s largest crypto exchange for violating U.S. anti-money laundering laws includes a settlement with CZ, who agreed to step down as CEO of Binance.

News of the deal and CZ’s departure caused a market correction that resulted in about $175 million worth of leveraged crypto positions being liquidated, while nearly $1 billion worth of crypto assets were liquidated outflows from the crypto exchange.

Over $1 billion in outflows from @Binance in the last 24 hours pic.twitter.com/nNMa10gtfg

– Pledditor (@Pledditor) November 22, 2023

Barring a market correction, most members of the crypto community viewed the settlement with the DOJ and CZ’s plea deal as a big win for the exchange and the crypto industry. Many critics had previously claimed that the US pursuit of Binance would end the crypto exchange’s dominance.

This is the biggest victory of CZ’s life.
Absolute 3D chess master.

From day one, the DOJ and SEC have always been the biggest risk to Binance. CZ’s biggest threat. The dragon on the horizon.

Now, after years of uncertainty, the DOJ has finally been neutralized. The dragon is killed…

— Cole Garner (@ColeGarnersTake) November 22, 2023

Many others called Binance’s settlement with the DOJ the final step before the US Securities and Exchange Commission (SEC) approves a spot Bitcoin ETF (BTC). In general, the crypto community seems to view the deal as a win-win scenario for the crypto ecosystem and a bullish catalyst for the next bull market.

Sweet baby Jesus, that’s bullish! Binance’s settlement with the DOJ eliminates the bearish scenario. I think approvals for the Bitcoin Spot ETF are just around the corner.

When we start pumping and the euphoria returns, don’t forget to take profits! https://t.co/LCokdV7Y7E

— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) November 21, 2023

However, not everyone in the crypto community was so optimistic about the agreement between Binance and DOJ. Some noted that the crypto community is still waiting for SEC action against Binance and that the exchange will likely face a tougher fight as the agency refuses to settle.

I see a lot of bullshit posts on my timeline.

I don’t think people understand the situation…

It is obvious that Binance would settle and pay a hefty fine. But that doesn’t mean that there will only be sunshine in the future. Remember, all the SEC/DOJ firepower was focused on Binance now that… pic.twitter.com/cgpDElDqRR

— ImNotTheWolf (@ImNotTheWolf) November 22, 2023

However, the SEC lawsuit is civil in nature and analysts believe that the DOJ settlement means that Binance and the crypto industry have removed the biggest obstacle to launching a bull market.

Some others compared Binance’s settlement with the DOJ to BitMEX, in which then-CEO Arthur Hayes pleaded guilty to violating anti-money laundering laws and resigned from his role. He was later sentenced to two years probation, avoiding a possible prison sentence of six to 12 months.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers