Donald Trump’s ties to the crypto world might get even deeper if reported talks with Binance somehow lead to a working relationship with the world’s largest cryptocurrency exchange.
The talks — as described this past week in separate stories from the Wall Street Journal and Bloomberg — would have the potential to bring closer together one of the biggest players in the world of digital assets and a US president who has pledged to make America "the crypto capital of the planet."
Trump has already signed executive orders that benefit the industry and has pledged to help push through legislation that the industry favors. At the same time, he has existing interests in other crypto ventures that benefit if the value of digital assets rise.
The discussions thus far with Binance have included a Trump family stake in Binance’s US arm, according to the Wall Street Journal, which reported that former Binance CEO Changpeng Zhao is also seeking a pardon from the administration. In 2023, Zhao pleaded guilty to violating US anti-money-laundering requirements.
Binance founder and former CEO Changpeng Zhao, who pleaded guilty to violating US law by failing to implement a program to prevent money laundering, arrived for his sentencing in federal district court in April 2024. (Reuters/Deborah Bloom) ·REUTERS / Reuters
Bloomberg reported that the conversations included the possibility of a stablecoin from Binance and World Liberty Financial, a crypto business with ties to the Trump family and the family of Steve Witkoff, the president’s envoy to the Middle East. Stablecoins are pegged to other assets, such as the dollar.
A Trump administration official denied Witkoff's involvement to the Wall Street Journal and said he is in the process of divesting from his business ties.
Binance's Zhao, on the social media platform X, denied discussions of a business deal with World Liberty Financial or a pardon deal for himself with anyone tied to the Trump administration. He also denied that Binance has purchased World Liberty's crypto token.
In a post on X, World Liberty called the reports from the Wall Street Journal and Bloomberg "unsubstantiated," without going into further details.
A closer relationship with Binance, if it were to happen, would give the president even more exposure to the crypto world as he delivers on promises he made to the industry during his first 100 days in office.
Just before Trump's inauguration, his team launched an official meme coin for the 47th president (TRUMP) and one for first lady Melania Trump (MELANIA) on the solana blockchain.
Fight Fight Fight LLC and CIC Digital LLC, an affiliate of the Trump Organization, own 80% of the meme coin’s total supply, subject to a three-year unlocking schedule, according to a disclosure on the meme coin’s website.
His namesake Trump Media & Technology Group (DJT) also wants to launch a bitcoin exchange-traded fund and has said it will allocate up to $250 million of cash tied up in a venture called Truth.Fi into cryptocurrencies and other investments.
As for World Liberty, Trump and his sons are backers of that crypto project, launched in 2024, and they have promoted it on social media. The president is listed on World Liberty’s website as "chief crypto advocate" while his sons — Eric, Donald Jr., and Barron — hold the title of "Web3 ambassador."
In exchange for that promotion, a Trump family-owned limited liability corporation receives 22.5% of the project’s crypto token, along with 75% of any net revenues after World Liberty earns $30 million.
People walk past a cryptocurrency exchange office with a screen featuring President Trump holding cryptocurrency coins in Hong Kong. (Mladen Antonov/AFP via Getty Images) ·MLADEN ANTONOV via Getty Images
Witkoff, the president’s envoy to the Middle East, and his sons Zach and Alex are all listed as co-founders of World Liberty. Zach Witkoff was part of an exclusive group of crypto executives invited to the White House’s first-ever crypto summit on March 7.
The president isn't required under law to divest any of his holdings while in office, even if any potential conflicts of interest surface. A law passed in 1977 does require him to file an annual disclosure listing his income, assets, and debt.
Since taking office, Trump has, in fact, delivered on some of his promises to the industry via two executive orders.
The first banned the US from creating a central bank digital currency and established a cross-government presidential working group on digital assets that got the ball rolling on his more sizable vows to the industry.
The president has also promised to enable the development of a federal regulatory framework for crypto markets, which the industry hopes will make it easier to do business in the US and become more closely tied to Wall Street.
On Thursday, the Senate Banking Committee took one step in that direction by advancing stablecoin legislation that would set rules for how bank regulators would oversee firms issuing such coins.
From left, Secretary of Commerce Howard Lutnick, Treasury Secretary Scott Bessent, President Trump, White House AI and crypto czar David Sacks, and Bo Hines, a member of the Presidential Council of Advisers for Digital Assets, attend the White House crypto summit on March 7. (Pool via AP) ·ASSOCIATED PRESS
Binance, which had several clashes with the US government during the Biden administration, has already caught one break during Trump's second term. Last month, the SEC put on hold a civil lawsuit against Binance and Zhao filed in June 2023, alleging securities violations.
In November 2023, Binance pleaded guilty in a US federal court to money laundering, unlicensed money transmitting, and sanctions violations, including facilitating transactions by Palestinian militant organization and US-designated terrorist group Hamas.
It was fined $4.3 billion. Then-CEO Zhao agreed to pay a $50 million fine and step down as CEO of the company but was allowed to maintain his majority ownership as part of the deal.
In April 2024, Zhao was sentenced to four months in prison after pleading guilty to violating US anti-money laundering laws. Binance currently gives no official jurisdiction for its headquarters.
On Wednesday, the company said it was taking in its first institutional investment ever from Abu Dhabi-based AI and advanced technology investor MGX. The $2 billion stake is to be paid in a stablecoin.
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David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance.
