- Maxine Waters blasts President Trump for pardoning the Binance co-founder.
- Democrats double down with new bills targeting Trump’s crypto ties.
- The White House has denied conflicts of interest.
A top Democrat has condemned US President Donald Trump’s decision to pardon Binance co-founder Changpeng Zhao, known in crypto circles as CZ.
On Monday, Maxine Waters, the top Democrat on the House Financial Services Committee, said that the pardon sends a “dangerous and reckless message to white-collar criminals and the entire cryptocurrency industry.”
“It’s telling crypto criminals that they can break the law, defraud investors, and get away with it, as long as they are also Trump’s benefactors,” she said in a statement.
“Meanwhile, everyday investors are left completely vulnerable. However, this should come as no surprise. Since taking office, Trump has made it his priority to excuse crypto criminals while weakening the very regulators responsible for holding these bad actors accountable and protecting American investors.”
Blurred lines
This attack highlights how Democrats are using crypto as a cudgel to challenge the White House, often linking it to the Trump family’s sprawling crypto empire. Those ventures have rattled Trump’s political opponents by blurring the lines between his personal interest and public policy.
Since taking office, the president has hosted a gala for investors into his memecoins, pardoned several crypto figures, and pushed regulators to soften their policing of the industry.
“It’s open corruption,” the late US representative Gerry Connolly told DL News in May.
The White House has denied any conflicts of interest, saying that “President Trump’s assets are in a trust managed by his children.”
Zhao’s pardon
Trump’s pardon of Zhao has fuelled these allegations further. The Binance co-founder pleaded guilty in 2023 to violating US law by failing to run an appropriate anti-money laundering programme during his tenure as CEO of the exchange. He spent four months in jail in 2024.
Reports of a possible pardon and claims of deepening ties between the president and the Binance founder have circulated since March.
For instance, the Wall Street Journal reported in March that Trump’s family was in talks to acquire a stake in Binance. It was “unclear” whether the Trumps’ possible financial stake in Binance would be contingent upon such a pardon, according to the report.
Zhao has repeatedly denied media reports that he’s attempting to secure a pardon from Trump.
“I have had no discussions of a Binance US deal with … well, anyone,” the billionaire wrote on X after the report was published.
In July, CZ threatened to sue Bloomberg after the outlet reported Binance had written the code for USD1, a stablecoin issued by World Liberty Financial. The company has deep ties to the Trump family.
Crypto bills pile up
The pardon is now fuelling Democrats’ push to tighten rules on crypto and political power.
On Monday, Representative Ro Khanna said he will introduce a bill banning the president, vice president, and all elected officials from owning or creating cryptocurrencies, while speaking to MSNBC.
The proposal is designed to stop conflicts of interest and prevent politicians from profiting off digital assets while in office.
Other Democrats are backing new ethics and transparency bills, including proposals that would require federal officials to disclose their crypto holdings and restrict campaign donations made in digital tokens.
Anti-crypto firebrand, Senator Elizabeth Warren, is a leading critic of Republican crypto bills. In July, she presented a framework for how to regulate the industry. It would’ve required anti-money laundering compliance and prevent politicians like Trump from profiting off crypto tokens.
