Binance's $7.1M Bet: Trump Ties to Reshape Crypto Regulation

Binance has intensified its lobbying efforts in Washington, D.C., hiring Ches McDowell, a close ally of Donald Trump Jr., to represent its interests at the White House and Treasury Department. The firm Checkmate Government Relations, founded by McDowell, has secured $450,000 in fees from Binance for lobbying services rendered in the past month alone, according to recent disclosure filings. This move underscores Binance's aggressive strategy to navigate regulatory challenges and potentially secure a pardon for its founder, Changpeng "CZ" Zhao, who is currently under scrutiny by U.S. authorities.

McDowell's firm has rapidly risen as a key player in Washington's lobbying landscape, generating $7.1 million in revenue over the past three months. The firm's D.C. office, opened this year, focuses on financial policy and "administrative relief" initiatives, positioning it to influence regulatory frameworks critical to Binance's operations, according to a Lookonchain report. This comes as Binance also engaged prominent crypto attorney Teresa Goody Guillén earlier this year, who has billed the company and Zhao approximately $290,000 so far in 2025. Guillén, once considered for the role of SEC chair under Trump, has not commented on her current role, according to the Coinotag disclosure.

The lobbying surge aligns with Binance's broader push to rehabilitate its U.S. presence. In September, President Trump pardoned Zhao, who had pleaded guilty to an anti-money laundering violation and served four months in prison. Trump's administration framed the pardon as a rebuke of the Biden administration's "war on cryptocurrency," with the White House press secretary stating that Zhao was "recommended by many" and that his prosecution was "not a crime," as reported by MarketWatch. Binance has since emphasized its gratitude, calling Trump's leadership pivotal to making the U.S. the "crypto capital of the world," according to a Morningstar report.

Analysts suggest Binance could seek regulatory approval to re-enter the U.S. market by applying to register as a foreign board of trade with the Commodity Futures Trading Commission (CFTC). If approved, the exchange could offer perpetual futures contracts-a popular but leveraged trading instrument-potentially attracting institutional investors and increasing market liquidity. However, trust remains a hurdle. "People don't have a lot of trust for Binance in the U.S., but it could still do quite well," said Alexander Blume, CEO of Two Blume, noting the competitive edge such a move would create for other exchanges, as noted in the Morningstar piece.

Binance's ties to Trump's inner circle extend beyond lobbying. The company has supported World Liberty Finance, a Trump family venture that launched the stablecoin USD.1. While no formal business deal exists between Binance and World Liberty, the platform has driven significant revenue for the Trump family, surpassing their real estate portfolio's annual income, as reported by the Wall Street Journal.