Okay, so Trump pardoned Changpeng Zhao (CZ), the Binance guy, and then claimed he doesn't know who he is. The official line is that it was to correct Biden's "war on crypto." But let's be real, there's always more to the story, isn't there?
The Pardon and the Denials
The pardon itself is interesting. Zhao pleaded guilty to enabling money laundering. Four months in prison, stepping down as CEO – not exactly a slap on the wrist, but a pardon wipes the slate clean, lifting restrictions on running financial ventures. The White House spin, delivered by Karoline Leavitt, frames it as an "overly prosecuted case." Convenient, considering Trump's past involvement with crypto ventures.
Then comes the denial. "I don't know who he is," Trump told 60 Minutes. Claims he was told Zhao was a victim of a "witch hunt." This is where things get murky. 'I don't know who he is,' says Trump after pardoning crypto tycoon
His companies, Zhao's companies, have partnered with firms linked to Trump. Dominari Holdings, based in Trump Tower, has Trump's sons on the board of advisors. In May, a stablecoin launched by World Liberty Financial (another Trump-linked firm) was slated to be used for a $2 billion investment in Binance. I've looked at hundreds of these types of deals, and the cross-pollination of crypto and Trump's business interests is not exactly subtle.
So, either Trump is genuinely clueless—which is hard to believe given the proximity of these deals—or he's playing a very calculated game.
The ETF Factor and the SEC
While Trump's playing coy, the crypto world is eyeing something else: ETFs. Spot crypto ETFs, specifically. The SEC has been dragging its feet, but a workaround is emerging. Issuers are filing updated S-1 registration statements with "no delaying amendment" language. Basically, if the SEC doesn't act within 20 days, the filing automatically becomes effective.
Canary Capital, Bitwise, and Grayscale have already used this tactic to launch ETFs. Fidelity has filed for a spot Solana ETF, and Canary Capital for an XRP ETF. If the SEC stays hands-off, we could see an XRP fund as soon as November 13. Crypto ETFs: November Could Be the New October for U.S. After Shutdown Delays SEC Decisions
James Seyffart, an ETF analyst at Bloomberg Intelligence, makes a key point: some funds haven't received any SEC feedback on their S-1s. Those are unlikely to launch without the government reopening.
Here's the connection: If Trump is genuinely pro-crypto, pushing through the Zhao pardon could be a signal to the SEC to back off and let these ETFs launch. It's a way to grease the wheels without explicitly endorsing specific projects.
The question is, why? What's the play? Is it really about "making sure the US is a leader in the industry," as Trump claimed? Or is there a more direct financial incentive at play?
Digging into the Motivations
Trump's previous actions muddy the waters. He halted a fraud case against Justin Sun after Sun invested in World Liberty Financial. He's pardoned founders of BitMEX (money laundering charges) and Ross Ulbricht (Silk Road). A pattern is emerging, and it's not one of blind justice.
The numbers are hard to pin down precisely. We don't know the exact financial relationship between Trump and these crypto figures. We don't know how much Trump-linked firms profited from these partnerships. What we do know is that Trump's actions consistently benefit individuals and companies operating in the shadier corners of the crypto world.
And this is the part of the report that I find genuinely puzzling: the lack of transparency. Why not be upfront about the reasons for the pardon? Why the denial of knowing Zhao? It suggests something to hide.
A Cynical Power Play
So, what's the real story? The pardon of Changpeng Zhao, coupled with Trump's feigned ignorance, doesn't pass the smell test. It feels like a calculated move, designed to benefit Trump's own financial interests under the guise of supporting the crypto industry. The degree of the calculation is open to debate, but the underlying cynicism is not.
