Binance courts Trump ties as it seeks return to US market and pardon for founder

Binance courts Trump ties, seeks U.S. return and Zhao pardon.

Cryptocurrency exchange Binance is deepening ties with the Trump family as it seeks to re-enter the US market, remove regulatory oversight, and secure a pardon for its convicted founder, Changpeng Zhao. According to people familiar with the matter, Binance executives met with Treasury Department officials last month to request the removal or scaling back of a court-appointed monitor overseeing the company’s compliance with anti-money-laundering laws, the Wall Street Journal reported.

Trump-linked stablecoin deal in the works

At the same time, Binance has been in discussions to list a new dollar-pegged stablecoin—USD1—issued by World Liberty Financial, a crypto venture co-founded by members of the Trump family. If listed on Binance’s platform, USD1 could gain rapid access to the global crypto market, where stablecoins like Tether have reaped billions in profits.

For the Trump family, the deal could provide a lucrative foothold in the digital currency world. For Binance, the arrangement could offer political protection and help the exchange ease restrictions imposed after its record $4.3 billion penalty in 2023 for allowing illicit finance on its platform.

Political alliance solidified at Abu Dhabi summit

The Binance-Trump relationship began solidifying at a VIP crypto event in Abu Dhabi late last year, where Zhao and Eric Trump appeared alongside future administration officials. At the event, Trump allies promised a crypto-friendly policy agenda. Since then, discussions have intensified over a possible Trump family stake in Binance.US and Binance’s support for USD1.

Meanwhile, the Trump administration has moved quickly to dismantle existing crypto enforcement mechanisms, including pausing corporate monitorships and disbanding the Justice Department’s cryptocurrency unit, which helped bring the Binance case. The shift came in a memo titled “Ending Regulation by Prosecution.”

Binance pushes to end Treasury oversight

Binance executives, including CEO Richard Teng and Chief Legal Officer Eleanor Hughes, told Treasury officials that the monitorship imposed on the company was burdensome and inefficient. Internally, Binance staff have discussed altering anti-money-laundering controls, with some viewing it as a loosening of checks on high-risk customers.

Binance’s spokesperson said the company is “fine-tuning” rules but denied weakening controls, calling the monitorship “costly and inefficient.” The Treasury declined to disclose its position on the request.

Zhao pardon and crypto felons circle the White House

Binance is also lobbying for a presidential pardon for Zhao, who served a four-month prison sentence last year. Zhao has ties to World Liberty’s leadership, including Zach Witkoff and Rich Teo, who launched the USD1 token after supporting Zhao’s sentencing petition.

The Trump administration has already pardoned other crypto figures, including BitMEX co-founder Arthur Hayes. Now, the founder of the Tron blockchain, Justin Sun—facing SEC fraud charges and a US investigation—is World Liberty’s biggest outside investor. The SEC paused its lawsuit against Sun shortly after his $75 million investment in USD1, raising further questions about political interference.

Critics warn of captured regulation

The Trump-Binance partnership has alarmed many in the financial world, with fears growing that enforcement is being replaced by political favouritism. “You want to stop regulation by enforcement,” Zhao told attendees in Abu Dhabi—a vision the Trump administration appears to be enacting.

As Binance pushes for lighter oversight and US re-entry, critics warn that the crypto industry’s most controversial figures are now aligned with the highest levels of government—potentially reshaping global financial regulation in favour of powerful insiders.