- Binance explores partnership with Trump family to revive Binance.US
- Trump family may acquire a stake through World Liberty Financial.
- Zhao seeks pardon from Trump after facing regulatory challenges.
Binance reportedly initiated talks with representatives from the Trump family to establish potential business cooperation. The discussions between Binance and Trump representatives focus on possible stake ownership in Binance.US while Binance seeks to revive its US crypto exchange operations. The Wall Street Journal reported this news on March 13 based on sources who knew about the situation.
Binance Seeks Trump’s Family Partnership
Binance seeks to partner with the Trump family either directly or through World Liberty Financial in their proposed business deal. The Trump-backed crypto venture introduced in 2024 will potentially serve as a central element in the deal. Moreover, Binance founder Changpeng Zhao continues to pursue the Trump administration’s clemency after he experienced legal obstacles in the United States.
The report indicates that Binance founder Zhao, CZ, wants the Trump administration to offer him a pardon. Previously, he spent time behind bars in a US prison and has expressed readiness to accept a pardon from the Trump administration. The terms of the business relationship remain unclear although these political elements may influence the formation of such a deal.
Binance.US Regulatory Challenges
Binance.US lost much of its market share after regulatory penalties were imposed against the US branch. The exchange paid a $4.3 billion penalty in 2023 due to violation of anti-money laundering laws. The massive fine and accusations of sanction violations at Binance pushed the company to reconsider its US business operations.
The regulatory challenges facing Binance.US resulted in a drop in its market share from 27% to just above 1%. Binance runs its services in the US through a subsidiary as authorities continue to scrutinize its operations. The US Securities and Exchange Commission (SEC) continues to establish regulatory standards for digital assets which further complicates the situation.
According to reports, Binance has actively pursued considerable investment support from global investors such as a recent $2 billion deal with MGX. Binance makes this strategic investment to boost its market dominance as it faces regulatory obstacles. Binance continues to develop its US crypto influence through its discussions with the Trump family.
Trump Maintains Crypto Support
Trump maintains his support for the crypto industry through his support for cryptocurrency initiatives. The purchase of Binance.US stock would align with the Trump’s administration’s commitment to adopt digital assets. Eric Trump has been a vocal promoter of Bitcoin and other cryptocurrencies which solidifies his family’s connection to the crypto sector.
The Binance.US negotiations are managed by Steve Witkoff, a long-term associate of the Trump family. However, the administration denies any influence by Witkoff because he remains focused on business divestment plans. The US government continues to develop cryptocurrency regulations amid these negotiations.