Executives from Binance, the world’s biggest cryptocurrency exchange, met with officials from the U.S. Treasury Department last month. They asked the government to ease restrictions placed on the company, including removing a special U.S. monitor. This monitor was set up to make sure Binance followed anti-money-laundering laws after the company pleaded guilty in 2023 to breaking those laws. Binance wants to return to the U.S. market, and removing the monitor would be the first step toward that goal.
While these talks were happening, Binance was also discussing a possible business deal with a crypto company backed by the Trump family. That company, called World Liberty Financial, plans to launch a stablecoin called USD1. A stablecoin is a type of cryptocurrency tied to a fixed value, usually the U.S. dollar. Binance could help list and promote this new stablecoin, which might help the Trump family earn large profits. The more people use USD1, the more money they could make from the assets that support its value. Last year, the biggest stablecoin company, Tether, made about $13 billion in profit.
The Trump family sees an opportunity in working with Binance. Binance has over 250 million users and handles around $65 billion in trades every day. With Binance’s reach, World Liberty Financial could become a major player in the crypto industry. At the same time, Binance might get help from the Trump administration. If Trump wins the presidency again, he could help remove legal troubles Binance faces in the U.S.
Binance has already paid a $4.3 billion fine for letting terrorists, drug dealers, and sanctioned groups move money through its platform. As part of its 2023 deal with the U.S. government, the company had to cut off all American customers, report any past suspicious activity, and agree to supervision by two monitors—one from the Treasury Department and one from the Justice Department. The Justice Department recently ended its crypto unit and paused many monitorships, but the Treasury’s monitor still oversees Binance’s actions.
Binance is also trying to get a pardon for its founder and former CEO, Changpeng Zhao, often called CZ. Zhao served four months in prison after pleading guilty to money laundering charges. A pardon could clear his record and help Binance return to full business in the U.S. Zhao’s team says a pardon would be fair since many people in crypto have made mistakes while the industry was still new and unregulated.
At the same time, Trump family members have discussed taking a stake in Binance.US. That’s the American arm of Binance, which currently operates on a much smaller scale. The talks between the Trump family and Binance suggest a growing alliance between them. Both sides see benefits. The Trump family wants to grow its crypto venture, and Binance wants fewer restrictions and possibly support from a future Trump-led government.
The connection between Binance and the Trump family started last December at a crypto conference in Abu Dhabi. VIP attendees paid $10,000 to join a private room, where Zhao met with Eric Trump and others close to the Trump family. Steve Witkoff, who may serve as a crypto advisor in a future Trump administration, also attended. Eric Trump spoke about a new era for digital currency and promoted World Liberty Financial and its USD1 stablecoin. Conference guests were even offered a discount on tickets with the code “TRUMPPUMP21.”
Binance executives say that the U.S. government has been too harsh with the crypto industry. Zhao has spoken out against what he calls “regulation by prosecution.” That means using the courts to punish crypto companies instead of making clear rules. Many in crypto feel that this has made it hard to innovate or grow in the U.S.
World Liberty Financial has already brought on people close to Zhao. Rich Teo, a friend of Zhao’s, joined World Liberty to help launch USD1. Teo also asked the judge in Zhao’s case for a lighter sentence. Trump allies and Binance staff continue to work on ways to bring Binance.US back to life and make the USD1 token a success. Trump’s team believes that with the right support, Binance can move past its legal issues and focus on growing the crypto economy.
The Trump family’s support for Binance comes as a shift in how the U.S. government treats crypto. Under Biden, the Justice Department targeted major figures in crypto for helping bad actors move money. That included people who helped with Russian sanctions evasion, terrorist funding, and drug trafficking. Trump has taken a different approach. He’s already pardoned several people involved in crypto, such as Arthur Hayes, co-founder of BitMEX, who also broke anti-money-laundering laws.
Another major name tied to this story is Justin Sun, the founder of the Tron blockchain. Tron is one of the top networks for moving crypto, and it was linked to more than $26 billion in illegal activity last year, according to research firm TRM Labs. Sun invested $75 million in World Liberty’s stablecoin. After that, the SEC paused a fraud lawsuit against him. Sun also appeared at the Abu Dhabi conference, where he handed out small versions of a $6 million banana artwork he owns.
Zhao has agreed to help U.S. prosecutors with information about Sun as part of his plea deal. It is not clear how that will affect Sun’s legal case. Sun’s team has denied all wrongdoing and said that Tron does not support illegal activity.
The talks between Binance and the Trump family show how politics and crypto are becoming more connected. Crypto companies now see value in political support, and politicians see opportunities in the fast-growing world of digital assets. Binance’s push to remove monitors, the Trump family’s interest in launching USD1, and Zhao’s search for a pardon are all tied together.
The outcome could reshape how crypto is handled in the U.S. If Trump returns to power and follows through on loosening regulations, companies like Binance may once again have full access to the U.S. market. That could lead to a major shift in how digital currency is regulated and used across the country. Whether that benefits the average person or just the powerful few remains to be seen.
