White House Emphasizes Legal Scrutiny and Formal Process for Zhao Pardon
The White House stressed that Trump’s pardon of Changpeng Zhao was reviewed with strict legal scrutiny and followed a formal multi-agency process. Officials clarified that Trump had no personal relationship with Zhao, countering claims of favoritism. Pro-crypto lawmakers and industry supporters viewed the decision as a positive signal for regulatory reform, suggesting a more constructive approach toward digital assets in the United States.
The White House highlighted that the decision to pardon Changpeng Zhao received careful evaluation and involved coordinated work among government legal teams. Press Secretary Karoline Leavitt said the review followed standard procedures with input from the Department of Justice and the White House Counsel’s Office, reinforcing that the process adhered to established rules. She underlined that Trump’s remark about not knowing Zhao referred to a lack of personal ties, emphasizing the absence of personal influence on the outcome.
Leavitt added that the previous administration had pursued Zhao’s case with disproportionate severity, echoing Trump’s view that the prosecution leaned on political motivations rather than balanced regulatory oversight. Her comments drew support from pro-innovation policymakers who argue that excessively punitive actions in past years delayed the growth of legitimate crypto businesses across the United States. Many see the pardon as a meaningful step toward more reasonable enforcement practices.
A Shift Toward Crypto-Friendly Policy Signals
Trump’s recent moves indicate a softening stance toward the digital asset sector, with senior officials holding conversations with entrepreneurs and financial experts to consider clearer regulatory guidelines that encourage innovation while protecting consumers. Supporters believe this evolving approach could help the United States compete more effectively with hubs such as the UAE, Singapore, and the European Union, which have attracted investment through clearer crypto frameworks.
Zhao, who pleaded guilty in 2023 for compliance shortcomings at Binance, served a four-month sentence before being pardoned. The case fueled debate about how to apply financial regulations without deterring technological advancement, and the pardon now allows renewed dialogue between regulators and industry leaders.
Earlier this year, speculation linked World Liberty Financial, associated with Trump, to possible investment discussions involving Binance.US. Although the report was denied, it showed growing political and business interest in digital finance. Around the same period, Abu Dhabi-based MGX announced plans to use World Liberty’s USD1 stablecoin in a multibillion-dollar initiative, reflecting rising global partnerships in this space.
As Washington reassesses its approach to crypto oversight, the Zhao pardon is seen as a sign of a more balanced regulatory climate, one aiming to support entrepreneurship while maintaining responsible standards.