Trump pardons Zhao Changpeng, Binance may return to the U.S., reshaping the American digital currency market landscape
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Trump pardons Zhao Changpeng, Binance may return to the U.S., reshaping the American digital currency market landscape
After Trump's pardon order, Binance's BNB surged 8%, driving gains in mainstream cryptocurrencies such as Bitcoin and Ethereum.
Navigating Web3 tides with focused insightsBy Long Yue, Wall Street Insights
A presidential pardon has thrust the world's largest cryptocurrency exchange, Binance, and its founder Changpeng Zhao back into the spotlight in the U.S. market. The move not only sent Binance’s native token BNB surging but also sparked intense debate over Binance potentially reentering the U.S. market, possibly reshaping the competitive landscape of America's digital asset industry.
On Thursday local time, Wall Street Insights reported that White House spokesperson Levitt stated:
President Trump has issued a pardon for Mr. Zhao under the powers granted by the Constitution. He was one of those targeted in the Biden administration’s so-called war on cryptocurrency... The Biden administration’s war on cryptocurrency is over.
Trump himself told reporters that Zhao was recommended for clemency by many people and believed he had committed no crime.
Many people suggested he be pardoned, many said he did nothing wrong... He was just persecuted by the Biden administration. This wasn't a crime.
Following news of the pardon, BNB—the primary trading token on Binance—rose as much as 8%. The rally spread across the broader crypto market: bitcoin, a key market indicator, climbed 3%, while ether gained 3.7%, reflecting investors’ positive response to the development.
This dramatic turn has quickly focused market attention on the possibility of Binance returning to the United States. In 2023, Binance admitted to violating U.S. anti-money laundering laws and paid a record $4.3 billion fine, after which it was barred from operating in the U.S. Zhao himself served nearly four months in prison in 2024. The pardon is now seen as removing a major legal obstacle for both him and Binance.
Positive Market Reaction, Binance: Thanks to the President
The most immediate impact of the pardon has been at the market level. Jaime Baeza, managing partner at crypto hedge fund AnB Investments, said the news triggered a "relief rally."
Adam McCarthy, research analyst at Kaiko, also noted that BNB outperformed other assets because the pardon “removed a potential hurdle for Binance and its co-founder.”
Data shows BNB is the third-largest cryptocurrency (excluding stablecoins), with a market cap of $157 billion. Zhao has recently remained actively involved in developing the BNB blockchain, and his family office, YZi Labs, has invested in several digital asset firms holding BNB tokens.
A Binance spokesperson told MarketWatch: "We thank President Trump for his leadership and his commitment to making the U.S. the global hub for cryptocurrency."
The Road Back to the U.S.: Opportunities and Regulatory Hurdles
The pardon opens up possibilities for Binance to return to the world’s largest capital market.
Ian Weisberger, CEO of crypto trading platform CoinRoutes, believes that if Binance resumes operations in the U.S., it could open access to the world’s largest crypto trading venue for American investors—a move that might “change the rules of the game” for the U.S. crypto market.
According to MarketWatch, one possible path would be for Binance to apply for registration with the U.S. Commodity Futures Trading Commission (CFTC) as a foreign board of trade. Alexander Blume, CEO of crypto trading firm Two Blume, said Binance’s return could unlock greater liquidity for U.S. institutional investors and bring more competition to the market.
However, the road back is far from smooth. Seoyoung Kim, finance professor at Santa Clara University, emphasized in an interview that Binance’s return is “far from guaranteed,” as it would still need approval from both the Securities and Exchange Commission (SEC) and CFTC depending on the products it intends to offer.
Political Controversy and Scrutiny of Interests
The pardon has not come without controversy. Critics argue it may involve political quid pro quo. Binance is reportedly one of the main backers of World Liberty Finance, a crypto project launched by the Trump family and supported by Binance itself.
Mark Hays, Deputy Director of Crypto and Fintech Policy at Washington advocacy group American Financial Reform, told MarketWatch the pardon reflects “corruption from the White House” and “paints a dark picture of undue influence in American politics.” He warned that Binance’s potential return to the U.S. market could signal growing political favoritism.
Despite controversies and regulatory hurdles, Trump’s pardon undoubtedly adds a crucial variable to Binance’s future. Markets will watch closely whether and how this crypto giant can navigate its uncertain path back within the U.S. regulatory framework.
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