Will Binance's Pardon Translate to U.S. Market Access?

President Donald Trump's pardon of Changpeng Zhao, founder of Binance, has reignited speculation about the world's largest cryptocurrency exchange resuming operations in the U.S. The move, announced October 23, could signal a shift in the administration's stance toward crypto regulation, though significant hurdles remain for Binance to re-enter the American market, according to Yahoo Finance. Zhao, known in the industry as CZ, was convicted in 2023 of failing to prevent money laundering and served nearly four months in prison after pleading guilty to related charges, according to MarketWatch.

Binance was barred from the U.S. in 2023 following a $4.3 billion settlement with the Department of Justice over violations of anti-money laundering laws, according to Morningstar. The company later established Binance.US, a separate entity with limited operations and product offerings, but it has not replicated the scale of its global counterpart. Industry participants argue that a full Binance return could transform the U.S. crypto landscape by providing access to its vast trading platform. Ian Weisberger, CEO of CoinRoutes, noted that such a move would "change the game for crypto in America" by opening the largest trading venue to American investors, as MarketWatch reported.

However, regulatory challenges persist. Binance must still secure approvals from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), depending on the products it offers. Seoyoung Kim, a finance professor at Santa Clara University, emphasized that the exchange's comeback is far from guaranteed, given the stringent compliance requirements, according to Morningstar. Critics, meanwhile, have condemned the pardon as emblematic of "undue influence in American politics." Mark Hays of Americans for Financial Reform called it a reflection of "corruption emanating from the White House," highlighting concerns about political favoritism, as MarketWatch reported.

The pardon has already triggered market reactions. BNB, Binance's native token, surged 15% shortly after the announcement, reaching a high of over $1,150, according to Yahoo Finance. Zhao, who stepped down as CEO in 2023 and was replaced by Richard Teng, a former financial regulator, has pledged to support U.S. efforts to become the "capital of crypto," according to Fortune. Yet, the pardon does not extend to Binance itself, leaving the company's legal and regulatory path unclear.

The Trump administration's decision follows months of reported discussions between Zhao's team and the president's inner circle, including support for a Trump-linked crypto initiative, as reported by TheStreet. While Binance has taken steps to align with regulatory expectations—such as appointing compliance-focused leadership—the company's past violations cast a long shadow. Internal Binance communications cited in the 2023 plea agreement included a satirical comment about the exchange's lax approach to anti-money laundering efforts, underscoring lingering skepticism about its commitment to compliance, as reported by Fortune.

The political and regulatory crosscurrents highlight the broader debate over crypto's role in the U.S. economy. Proponents argue that fostering innovation could position America as a global leader in digital assets, while critics stress the need for safeguards against financial crime. With the SEC reviewing over 150 pending crypto ETF applications and institutional Bitcoin inflows surging to $90.6 million in a single week, according to TradingNews, the landscape is evolving rapidly. Whether Binance can navigate these complexities to re-enter the U.S. market remains uncertain, but the pardon has undoubtedly shifted the narrative.