President Donald Trump’s pardon of cryptocurrency billionaire Changpeng Zhao (CZ), the convicted founder of the exchange Binance, has sparked a rare public break within the Republican party and severely complicated efforts to pass a bipartisan crypto regulation bill.
Republican Denouncement
The clemency decision, which came after CZ pleaded guilty to money laundering-related charges, drew sharp condemnation from within the GOP. Retiring North Carolina Republican Sen. Thom Tillis publicly denounced the move, stating, “I don’t like it. He was convicted. He’s not innocent.” Tillis’s comments signal that some Republican lawmakers are uneasy with Trump’s decision to forgive a crypto mogul whose company was a “hub for illicit finance.”
Impact on Crypto Legislation
The controversy immediately threatened ongoing negotiations for a major overhaul of crypto regulations in Congress:
- Democratic Outrage and Corruption Concerns: Democrats quickly denounced the pardon as corrupt, citing a reported $2 billion investment made in Binance by an Abu Dhabi-backed fund using a digital token issued by a crypto firm launched by Trump’s sons.
- Sen. Elizabeth Warren (D-Mass.), a leading crypto critic, said the pardon was evidence of corruption and warned, “if Congress does not stop this kind of corruption… it owns this lawlessness.”
- Bipartisan Effort Jeopardized: Even crypto-friendly Democrats negotiating the bill acknowledged the severity of the issue. Sen. Ruben Gallego (D-Ariz.), a leader of the bipartisan group, called Trump’s action “absolutely corrupt” and conceded that the issue “does need to be addressed.”
- This group of Democrats is now pushing for language in the bill specifically targeting the Trump family’s entanglements in the crypto industry, a move likely to be rejected by Republicans.
- Pro-crypto Democrat Sen. Ben Ray Luján (D-N.M.) stated he doesn’t “approve of what the president did,” but stressed that lawmakers shouldn’t be “distracted.” He argued the goal remains passing a strong bill that makes the environment tougher so “crooks can’t get away with the bullshit.”
The pardon has therefore turned a difficult policy negotiation into a heated ethical and political battle, putting the future of landmark crypto regulation in doubt.
