Key Highlights-
- Donald Trump pardons Binance founder Changpeng “CZ” Zhao, ending the Biden-era crackdown on crypto.
- Move sparks massive surge in digital assets as investors celebrate policy shift.
- Critics warn of political favoritism and reduced oversight of global crypto exchanges.
In a dramatic move that reshapes the US stance on cryptocurrency, Trump on Thursday pardoned Changpeng Zhao, the founder of Binance, the world’s largest crypto exchange.
Trump Ends “War on Crypto” With Bold Pardon
“Trump exercised his constitutional authority by issuing a pardon for Mr Zhao, who was prosecuted by the Biden administration in their war on cryptocurrency,” the White House said in a statement. “The war on crypto is over.”
The pardon marks a symbolic end to years of regulatory hostility toward crypto under the Biden administration, which aggressively targeted exchanges for money laundering and compliance violations.
Who Is CZ, and Why It Matters
Known widely as CZ, Zhao built Binance into a global crypto powerhouse, dominating digital trading volumes since its founding in 2017. In 2023, he pleaded guilty to failing to maintain an anti–money laundering program, leading Binance to pay a record $4.3 billion settlement with U.S. regulators. Zhao stepped down as CEO and was sentenced to four months in prison.
Trump’s decision, however, wipes the slate clean, reinstating CZ’s reputation and potentially reopening Binance’s path to U.S. markets. As reported by Reuters, the pardon “signaled an unprecedented alignment between political power and digital finance.”
Crypto Markets React With Euphoria
Following the announcement, the global crypto market saw an immediate surge. Bitcoin prices climbed over 8%, and Binance’s native token BNB spiked by more than 12%, according to CoinDesk data.
“Incredible news of CZ’s pardon today. We thank President Trump for his leadership and commitment to make the U.S. the crypto capital of the world,” Binance said in a statement shared on X (formerly Twitter).
Incredible news of CZ’s pardon today! Thank you, President Trump @POTUS for your leadership and for your commitment to make the US the crypto capital of the world!
— Binance (@binance) October 23, 2025
CZ’s vision not only made Binance the world’s largest crypto exchange but shaped the broader crypto movement.…
Analysts say the move could mark the beginning of a “crypto-friendly” Trump administration 2.0, with plans to integrate blockchain technology into mainstream finance and reduce regulatory hurdles.
Trump’s Crypto Empire: A Conflict of Interest?
While investors celebrate, critics warn of conflicts of interest. Reports from The Wall Street Journal earlier this year suggested that representatives from Trump’s family crypto firm, World Liberty Financial, had held talks with Binance about acquiring a stake in its US arm.
Zhao has denied any link between the pardon and business negotiations, posting on X: “Fact: I have had no discussions of a Binance US deal with anyone. No felon would mind a pardon.”
Still, Binance played a crucial role in legitimizing World Liberty Financial. In May, the exchange accepted a $2 billion payment from an Emirati fund using a digital coin created by Trump’s firm, a deal that, according to Bloomberg, gave Trump’s token instant market credibility.
Political Backlash and Oversight Concerns
Democratic senators, including Elizabeth Warren, issued a statement condemning the pardon as a “dangerous rollback of crypto accountability.” The group argued that easing restrictions could embolden money laundering, terrorism financing, and other illicit activities.
“As the administration loosens oversight on an industry where bad actors have violated sanctions law, it’s not surprising that Binance, which admitted to prioritizing profits over compliance, would seek to roll back regulation,” their statement said.
Also Read | Crypto Giant Binance Faces Money Laundering Probe in France
The US Justice Department had accused Binance of failing to report over 100,000 suspicious transactions, including those tied to terrorist organizations such as al-Qaida and Hamas.
What’s Next for Binance and US Crypto Policy
For Trump, the pardon underscores his plan to transform the US into a “global crypto hub.” Industry insiders believe it could prompt major firms, including Coinbase and Ripple, to seek friendlier regulation or even repatriate operations from overseas.
However, experts warn that this political realignment may invite fresh scrutiny from international watchdogs like the Financial Action Task Force (FATF), potentially putting Washington at odds with its G7 allies.
As crypto prices soar and policy debates intensify, one thing is clear: the Trump pardon has reignited the world’s crypto revolution, with Washington once again at the center of it.
