White House Weighs CZ Pardon, Crypto Policy Shift

Fox Business reporter Charles Gasparino, a veteran financial and political journalist with deep connections in Wall Street and White House circles, has ignited crypto markets with his recent tweet claiming that White House insiders say discussions about pardoning Changpeng ‘CZ’ Zhao are ‘heating up.’ According to Gasparino’s sources, President Trump ‘is leaning toward a pardon’ for the Binance founder, who resigned as CEO in 2023 and served four months in prison as part of a plea bargain with U.S. authorities.

This speculation builds on confirmed developments from May, when CZ’s legal team formally applied for clemency. The reports emerge against a complex backdrop of earlier speculation about the Trump family exploring investment deals involving Binance’s U.S. arm, though Zhao has denied those claims. While previous media reports of an already-issued pardon were retracted and Binance cofounder Yi He dismissed the rumors, the current discussion appears to center on active consideration rather than completed action.

CZ’s response to Gasparino’s report has been notably receptive. ‘Thank you, Charles. Great news if true,’ Zhao wrote while correcting a detail from the journalist’s post, before thanking him ‘for the coverage.’ This marks a significant departure from previous denials and suggests the Binance founder views the possibility favorably, even as Department of Justice records show no official clemency in his name to date.

Despite his prison sentence and resignation as CEO, Changpeng Zhao remains Binance’s largest shareholder and one of cryptocurrency’s most influential figures. The plea bargain that sent him to a minimum security prison in Lompoc, California, specifically allowed him to maintain his ownership stake in the exchange while prohibiting him from holding an executive role. This arrangement has kept him financially connected to the platform he founded in July 2017 following an initial coin offering that raised approximately $15 million.

Since his return from jail, Zhao has focused on global crypto advocacy, advising governments on digital asset policy and investing in blockchain startups through private ventures. His continued influence extends beyond his financial holdings to his role as a thought leader in the cryptocurrency space, making any potential change in his legal status particularly significant for the industry’s regulatory landscape.

Binance itself maintains its dominant market position despite the regulatory challenges. CoinGecko data shows the exchange processed more than $75 billion worth of trading volume over the last 24 hours amid market volatility—nearly five times the amount of trading as the next-biggest tracked exchange, Bitget. This trading volume underscores Binance’s continued dominance in the cryptocurrency exchange landscape, six months after Zhao’s departure from leadership.

A pardon for Changpeng Zhao could have far-reaching consequences for cryptocurrency regulation in the United States. Most immediately, it could ease regulatory constraints on Zhao’s future involvement in cryptocurrency ventures and potentially reopen U.S. markets to Binance operations under different terms. The exchange has faced significant regulatory scrutiny in the United States, and a pardon could signal a shift in the administration’s approach to cryptocurrency enforcement.

The move would also rewire power dynamics at Binance, potentially allowing Zhao greater operational influence despite his current shareholder status. While his plea bargain prevents him from holding an executive role, a pardon could remove other regulatory barriers that currently limit his involvement in the company’s strategic direction and day-to-day operations.

Perhaps most significantly, a presidential pardon for the founder of the world’s largest cryptocurrency exchange would represent a major policy statement about the Trump administration’s stance toward digital assets. It could signal an even friendlier crypto policy environment and potentially reintroduce political considerations into U.S. cryptocurrency regulation at the highest levels. The path from rumor to pardon remains uncertain, but the mere discussion at White House levels indicates cryptocurrency regulation has become a priority issue for the administration.