The world of cryptocurrency just got another twist with former President Donald Trump’s pardon of Changpeng Zhao (CZ), the founder of Binance. Last year, Zhao pleaded guilty to failing to maintain an effective anti-money-laundering program, leading to a significant settlement that saw him forfeit his CEO role and Binance pay a record $4.3 billion penalty.

Now, Trump has wiped Zhao’s criminal record clean, claiming it was part of the “Biden administration’s war on crypto”. But the pardon raises eyebrows, especially given the Trump family’s deep connections to the crypto world. World Liberty Financial, a crypto business founded by Trump and his sons, owns a 38 percent stake in a parent company, and Binance has previously agreed to a $2 billion investment in USD1, a coin issued by this company.

The crypto industry is watching closely. Some see this as a potential game-changer for US-based exchanges, with Binance representing a significant threat. The global exchange processes around $22 billion in trades daily, dwarfing competitors like Coinbase. Experts suggest the US crypto market is heading toward consolidation, with companies like Coinbase aggressively acquiring platforms and forming strategic partnerships to stay competitive.

However, the pardon isn’t without controversy. Industry insiders like Nic Carter from Castle Island Ventures acknowledge the Trump administration’s crypto-friendly approach but criticize the appearance of potential conflicts of interest. Azeem Khan, a crypto startup founder, warns that not enough legislative groundwork has been laid to protect the industry’s future.

While the pardon technically changes little in terms of Zhao’s and Binance’s legal obligations, it opens doors for potential future maneuvers. The move signals a complex relationship between politics, technology, and financial regulation that continues to evolve in unexpected ways.