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Trump’s Crypto Clemency: A Bold Move for Progress or a Moral Dilemma?

Trump’s Crypto Clemency: A Bold Move for Progress or a Moral Dilemma?

Bitget-RWA2025/11/03 08:04
By:Bitget-RWA

- Trump's 2025 pardon of Binance CEO CZ sparked debate over crypto ethics and U.S. regulatory leadership amid global competition. - The move faced criticism for alleged conflicts, including CZ's $2B investment in Trump-linked crypto ventures and prior regulatory violations. - Critics called it "pay for play," while supporters argued it boosted crypto innovation, citing a 15% post-pardon investment surge in U.S. firms. - Democrats demanded investigations as political tensions rose, with Trump framing the pa

The highly debated pardon of Binance founder Changpeng Zhao, also known as CZ, by President Donald Trump has sparked a nationwide discussion about ethics, regulatory oversight, and the direction of the U.S. cryptocurrency industry. Announced in October 2025, this move was part of Trump's larger agenda to establish the United States as a frontrunner in digital assets, a field he compared to artificial intelligence in terms of strategic value.

Trump’s Crypto Clemency: A Bold Move for Progress or a Moral Dilemma? image 0

During a rare

, Trump justified his decision, describing it as a necessary response to what he called a "Biden witch hunt" against leaders in the crypto space. "CZ was treated extremely unfairly by the Biden administration," Trump stated, asserting that the Binance founder was "targeted by a politicized government." He also stressed that he had no personal relationship with Zhao, saying . However, this claim conflicted with which revealed that Binance had enabled a $2 billion investment in , a crypto project linked to Trump and co-owned by his sons, Donald Jr. and Eric.

The pardon has faced strong backlash from Democratic lawmakers and ethics watchdogs. Senator Elizabeth Warren condemned the action as a "disgraceful misuse of authority," arguing in

that Zhao's financial connections to Trump family interests—including a 2023 plea deal over anti-money-laundering breaches—amounted to a "pay for play" situation. Zhao had already agreed to a $4.3 billion settlement with U.S. authorities, stepped down as Binance CEO, and served four months in prison, according to Coinpedia. Detractors also pointed out that MGX, a state-backed fund from Abu Dhabi, used Binance to invest in World Liberty's stablecoin just before the pardon, raising concerns about outside influence, as reported by .

Those in favor of the pardon, such as the Blockchain Association and Coin Center, claim the decision encourages progress by easing regulatory ambiguity. The association reported that U.S. crypto companies experienced a 15% increase in investments following the pardon, reflecting renewed optimism in the industry, according to Coinotag. The Trump administration presented the pardon as a key part of its plan to compete globally, especially against China, which has imposed stricter crypto controls. "America must lead in crypto," Trump declared, highlighting his sons' involvement in digital assets as evidence of the sector's promise.

The political repercussions are still mounting. White House Press Secretary Karoline Leavitt stated the pardon followed a "comprehensive review," while Democratic leaders have demanded congressional probes into possible conflicts of interest. At the same time, the Trump Organization has insisted it played no part in the pardon, as noted by The Independent.

As the digital currency landscape shifts, this pardon highlights the complex relationship between technology, international relations, and presidential authority. With new legislative debates on crypto regulation approaching, this decision may shape how future leaders weigh innovation against responsibility.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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