Trump's Crypto Moves Ignite Political Storm and Market Skepticism

U.S. President Donald Trump doubled down on his pro-crypto agenda in a 60 Minutes interview, defending his controversial pardon of Binance founder Changpeng Zhao (CZ) as a response to what he called a "Biden witch hunt" and framing his trade deal with China as a strategic move to bolster American leadership in digital assets. The pardon and trade agreement have sparked intense political and market debates, with critics questioning potential conflicts of interest and analysts dissecting their economic implications.

Trump, who claimed he "doesn't know who CZ is," argued that the pardon was necessary to protect innovation in the crypto sector, which he described as vital to U.S. economic competitiveness, as BeInCrypto reported. The decision erased CZ's 2023 conviction for anti-money laundering violations and restored his civil rights, despite a $4.3 billion settlement with U.S. regulators, Coinotag reported. The move has drawn scrutiny due to Binance's prior role in facilitating a $2 billion stablecoin purchase linked to World Liberty Financial, a Trump family crypto venture, CoinPedia reported. Democratic leaders, including Senators Elizabeth Warren and Adam Schiff, have called for investigations into potential pay-for-play influences, Coinrise reported.

Simultaneously, Trump's trade deal with Chinese President Xi Jinping, announced during their first in-person meeting since 2019, has been framed as a step toward easing global tensions while positioning the U.S. as a crypto-friendly hub. The agreement reduces U.S. tariffs on Chinese imports from 57% to 47%, suspends new rare earth export controls, and includes commitments to curb fentanyl precursor shipments, Bitget reported. While markets reacted cautiously to the deal, analysts noted that reduced trade tensions and the Federal Reserve's recent rate cut could create a more favorable environment for risk assets like Bitcoin and Ethereum, Brave New Coin noted.

The crypto market's response has been mixed. Despite initial optimism following the trade framework announcement, Bitcoin and Ethereum prices remained volatile, with some analysts attributing the muted reaction to pre-pricing of the developments and ongoing macroeconomic uncertainties, CryptoNews Australia reported. Meanwhile, Binance CEO Richard Teng emphasized the exchange's post-pardon focus on compliance and regulatory alignment, signaling efforts to rebuild trust, a point Brave New Coin had previously noted.

Critics, however, remain unconvinced. Senate Minority Leader Chuck Schumer accused Trump of "folding on China" and undermining national security protections by rolling back tariffs, Benzinga reported. The political backlash intensified as reports highlighted the Trump family's crypto ventures, which Cointelegraph estimated generated $802 million in revenue from digital assets in the first half of 2025. Trump dismissed such concerns, insisting his sons' business activities are separate from his presidential role, Coinrise later reported.

The administration's crypto rhetoric has also shifted. While Trump previously championed making the U.S. the "crypto capital of the world," he now describes the industry as "probably a great industry," reflecting a more cautious tone amid legal challenges to his tariff policies, Yahoo Finance reported. This ambiguity contrasts with his earlier deregulatory stance, as exemplified by his support for Truth Social's foray into blockchain-based prediction markets, a point Yahoo Finance also noted.

As the debate unfolds, the long-term impact of these moves on crypto markets and U.S.-China relations remains uncertain. While reduced trade tensions and regulatory clarity could attract institutional investment, lingering doubts about enforcement and geopolitical stability may keep investors on edge, Brave New Coin warned. For now, Trump's vision of a crypto-driven economic renaissance faces both domestic skepticism and global scrutiny.