Binance.US Defends USD1 Listing as Critics Cry 'Pardon Payback'

Binance.US has denied allegations of political bias in its decision to list USD1, a stablecoin tied to President Donald Trump's crypto venture, World Liberty Financial. The exchange defended the move as a standard business decision, rejecting claims by critics that it was a quid pro quo for Trump's recent pardon of Binance founder Changpeng Zhao.

Senator Chris Murphy (D-Conn.) accused Binance.US of rewarding Trump for the pardon, tweeting that the stablecoin listing was "a form of payback" after Trump commuted Zhao's prison sentence last week. In response, Binance.US emphasized that USD1 and WLFI (World Liberty's governance token) are listed on over 20 U.S. exchanges, including Coinbase and Kraken, and that the approval process followed its "ordinary course of business." "This was a business decision on the part of [Binance.US] and nothing more," the exchange stated on X, adding that elected officials' politicization of routine corporate actions is "unfortunate" .

USD1, the sixth-largest stablecoin globally with a $2.97 billion market cap, has been central to Trump's expanding crypto empire. The stablecoin, issued by World Liberty Financial and custodied by BitGo, has seen strategic integrations, including cross-chain technology partnerships with Enso to enhance liquidity and DeFi utility . Meanwhile, Trump's pardon of Zhao-a convicted money laundering offender-has intensified scrutiny of the administration's ties to crypto. Zhao, who served four months in prison and paid $50 million in fines after Binance pleaded guilty to $4.3 billion in penalties, praised the pardon as a boost for U.S. crypto leadership .

Critics, including Democrats and financial experts, have raised concerns about conflicts of interest. Rep. Maxine Waters accused Trump of favoring "crypto criminals" who enriched his family's ventures, while economist Robert Reich labeled the pardon part of a "Pay-to-Pardon Scheme" . The Trump family's financial stake in World Liberty Financial, which includes $5.7 billion in WLFI tokens and a $3.4 billion USD1-linked fortune, further complicates the narrative .

The controversy underscores broader tensions in the crypto sector. Trump's administration has positioned itself as pro-crypto, rolling back regulations and advocating for a national cryptocurrency reserve. However, the pardon and USD1's prominence have drawn comparisons to past scandals, with critics like Senator Elizabeth Warren condemning the decision as "a kind of corruption" .

Binance.US's defense highlights the stablecoin's market viability. USD1's integration across multiple exchanges and its adoption by institutional players—such as Abu Dhabi's MGX fund using $2 billion in USD1 to invest in Binance—suggest its appeal is driven by utility, not politics, according to a FinanceFeeds report. Nonetheless, the overlapping interests of Trump, Zhao, and World Liberty Financial will likely remain under scrutiny as the administration navigates its crypto-friendly agenda.