Trump pardons Zhao Changpeng, Binance may return to the U.S., changing the landscape of the American digital currency market
After Trump's pardon, Binance's BNB surged by 8%, driving up mainstream cryptocurrencies like Bitcoin and Ethereum. This move has sparked market speculation that it may pave the way for the world's largest cryptocurrency exchange, Binance, to return to the U.S. market or "change the rules of the game." However, its return to the U.S. still requires approval from regulatory agencies such as the U.S. SEC, and the road ahead is not smooth
A presidential pardon has brought the world's largest cryptocurrency exchange, Binance, and its founder, Changpeng Zhao, back into the spotlight in the U.S. This move not only propelled the price of Binance's native token, BNB, to soar but also sparked intense discussions about Binance's potential return to the U.S. market, which could reshape the competitive landscape of the American digital asset market.
On Thursday local time, Wall Street Insight reported that White House spokesperson Levitt stated:
U.S. President Trump has issued a pardon to Mr. Zhao under the powers granted by the Constitution. He is one of the targets prosecuted by the Biden administration in the so-called cryptocurrency war... The Biden administration's war on cryptocurrency is over.
Trump himself also told reporters that Zhao was recommended for a pardon by many and believed he had committed no wrongdoing.
Many people suggested pardoning him, and many said he committed no crime... He was just persecuted by the Biden administration, this is not a crime.
Following the news of the pardon, the price of BNB, the main trading token on the Binance platform, surged by as much as 8%. This upward trend also spread across the entire cryptocurrency market, with the market benchmark Bitcoin rising by 3% and Ethereum by 3.7%, reflecting investors' positive reaction to the news.
This dramatic shift has quickly focused market attention on the possibility of Binance returning to the U.S. market. Binance admitted in 2023 to violating U.S. anti-money laundering laws and paid fines of up to $4.3 billion, subsequently being banned from operating in the U.S. Zhao himself is also serving nearly four months in prison in 2024 as a result. The pardon is seen as removing a significant legal obstacle facing both him and Binance.
Market Optimism Response, Binance: Thank You, Mr. President
The most direct impact of the pardon is reflected in the market. Jaime Baeza, managing partner of cryptocurrency hedge fund AnB Investments, stated that this news brought a "relief rally."
Adam McCarthy, a research analyst at Kaiko, also pointed out that BNB's gains outpaced other assets because the pardon "eliminated a potential obstacle for Binance and its co-founder."
Data shows that BNB is the third-largest cryptocurrency (excluding stablecoins) after Bitcoin and Ethereum, with a market capitalization of up to $157 billion. Zhao has also been actively involved in the development of the BNB blockchain, and his family office, YZi Labs, has invested in several digital asset companies holding BNB tokens.
A spokesperson for Binance told MarketWatch: "We thank President Trump for his leadership and his commitment to making the U.S. the world's cryptocurrency capital."
The Road to Return to the U.S.: Opportunities and Regulatory Obstacles
The pardon has opened up possibilities for Binance to return to the world's largest capital market.
Ian Weisberger, CEO of the crypto algorithm platform CoinRoutes, believes that if Binance can resume operations in the U.S., it will open the largest cryptocurrency trading venue in the world to American investors, which could "change the game for the U.S. cryptocurrency market."
According to MarketWatch, one possible path is for Binance to apply to register as a foreign trading commission with the U.S. Commodity Futures Trading Commission (CFTC). Alexander Blume, CEO of the crypto trading firm Two Blume, stated that Binance's return could release more liquidity for U.S. institutional investors and bring more competition to the market.
However, the road to return is far from smooth. Seoyoung Kim, a finance professor at Santa Clara University, emphasized in an interview that Binance's return is "far from guaranteed" and still needs to apply for operational approval from the U.S. Securities and Exchange Commission (SEC) and CFTC based on the products it plans to offer.
Political Controversy and Interest Scrutiny
This pardon is not without controversy. Critics argue that this move may involve political quid pro quo. Binance is reportedly one of the main supporters of the crypto project World Liberty Finance, which was initiated by the Trump family and in which Binance also participated.
Mark Hays, the deputy director of crypto and fintech policy at the Washington advocacy group "Americans for Financial Reform," told MarketWatch that this pardon reflects "corruption from the White House" and "paints a dark picture of American politics being improperly influenced." He believes that if Binance truly returns to the U.S. market, it may indicate growing political favoritism.
Despite facing controversy and regulatory obstacles, Trump's pardon undoubtedly adds a key variable to Binance's future. The market will closely watch whether and how this crypto giant can navigate this unpredictable road to return under the U.S. regulatory framework
