In a surprising development, President Trump has granted a pardon to CZ, the influential figure behind Binance, one of the world’s largest cryptocurrency exchanges. This news comes amid a backdrop of a potential diplomatic meeting between Trump and Xi, which had been confirmed earlier by the White House Press Secretary. Following the announcement of the pardon, there was an immediate spike in the cryptocurrency markets, with Binance Coin (BNB) seeing a 5% price increase and Bitcoin climbing beyond $111,000.
CZ’s Reaction and Future Prospects
CZ, who learned of his pardon while on a flight, conveyed his deep gratitude to President Trump via social media for his commitment to justice, innovation, and fairness. He expressed his determination to transform the United States into the hub of the cryptocurrency world while promoting Web3 on a global scale. CZ hinted at releasing additional thoughts once he was no longer airborne.
Richard Teng, the new CEO of Binance, articulated the significance of CZ’s pardon, highlighting it as a milestone not just in CZ’s personal journey but also as a reflection of the cryptocurrency industry’s progress. He expressed Binance’s renewed focus under his leadership to enhance access, reduce fees, and establish trust and innovation on a global level. Teng emphasized Binance’s eagerness to collaborate with policymakers worldwide to create a more open and accessible financial future.
The Real Reasons Behind the Pardon
The primary reason behind the pardon is believed to be Trump’s desire to correct the perceived failures of the previous administration under Biden concerning cryptocurrencies. Under Biden, aggressive legal actions involving Ripple, Coinbase, and other crypto entities were instituted, which have now been resolved under Trump. Speculation also exists about a backdoor deal involving a significant investment by an Emirati company, MGX, in Binance, which purportedly involved restricted chip technology.
Shanghai-based G42, a subsidiary of MGX, and its connection to the Trump administration through a financial loan further stirred intrigue, linking family interests with international technology privileges. These developments have raised questions of national security among Democratic lawmakers, prompting discussions in Congress.
The return of CZ at the helm of Binance could potentially reduce the pressure on cryptocurrency regulations and signal an era of less restrictive oversight. With CZ’s established brand presence, such changes could be pivotal in bolstering the growth and adoption of cryptocurrencies.