The Trump administration has defended its controversial decision to pardon Binance founder Chao Changpeng (CZ).
This came just days after President Trump claimed he did not know the Binance executives, despite having all anti-money laundering convictions expunged.
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White House says CZ pardon heralds new era in US crypto policy
White House press secretary Caroline Levitt told reporters Tuesday that CZ’s pardon reflects President Trump’s “commitment to economic freedom, innovation, and fair treatment of American entrepreneurs and global partners in the crypto economy.”
Speaking to members of the media, she accused the previous administration of waging a “regulatory campaign” to drive blockchain talent and capital overseas.
Levitt cast the move as part of a broader effort to “end Biden’s crypto wars” and restore America’s status as a global leader in digital innovation.
“President Trump exercised his constitutional authority by pardoning Mr. Zhao, who was prosecuted by the Biden administration in the crypto wars. This administration will support innovation, not criminalize it,” Levitt said.
CZ previously pleaded guilty to compliance violations at Binance and served a four-month sentence, but remains a polarizing figure in global finance.
Critics of the pardon say it undermines the Justice Department’s previous efforts to increase oversight of the cryptocurrency sector. But supporters see it as a powerful symbolic gesture that signals President Trump’s intention to make the United States a hub for blockchain growth.
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Meanwhile, this development comes on the heels of the US president denying knowing CZ and avoiding any personal ties to Binance executives.
TradFi Media quoted President Trump as saying, “I don’t know who he is. I know he was sentenced to four months or something like that. And I heard it was a witch hunt for Biden.”
Longest US government shutdown in history
The announcement comes as the U.S. government shutdown enters a record period, with federal agencies shut down for more than five weeks due to funding disputes between the White House and Congressional Democrats.
The prolonged stalemate has already roiled markets and caused volatility across stocks and digital assets.
“The U.S. government is now in its 35th day, the longest in history. Since the government shutdown began on October 1st, the U.S. government has taken out $600 billion worth of debt, which equates to +$17 billion per day,” the Kobisi letter reads.
At a news conference, Trump advisers contrasted what they called the administration’s “pro-growth digital policies” with what they called Democrats’ obstructionism on both spending and innovation.
