The Trump administration has defended its controversial decision to pardon Binance founder Changpeng Zhao (CZ).
It comes only days after Trump claimed not to know the Binance executive, despite erasing all his anti-money laundering convictions.
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White House Says CZ Pardon Marks a New Era for US Crypto Policy
White House Press Secretary Karoline Leavitt told reporters on Tuesday that the CZ pardon reflects President Trump’s “commitment to financial freedom, innovation, and fair treatment for US entrepreneurs and global partners in the crypto economy.
Speaking to members of the media, she accused the previous administration of waging a “regulatory crusade” that drove blockchain talent and capital overseas
Leavitt framed the move as part of a broader effort to “end Biden’s war on crypto” and restore the United States’ standing as a global leader in digital innovation.
“President Trump exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency. This administration will support innovation — not criminalize it,” Leavitt said.
CZ, who previously pleaded guilty to compliance failures at Binance and served a four-month sentence, has remained a polarizing figure in global finance.
Critics of the pardon argue that it undermines the Justice Department’s prior efforts to strengthen oversight in the crypto sector. Supporters, however, see it as a powerful symbolic gesture signaling Trump’s intent to make the US a hub for blockchain growth.
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Meanwhile, this development comes shortly after the US president denied knowing CZ, sidestepping any personal connection to the Binance executive.
“I don’t know who he is. I know he got a four-month sentence or something like that. And I heard it was a Biden witch hunt,” TradFi media reported, citing Trump.
Longest US Government Shutdown on Record
The announcement came as the US government shutdown entered a record-breaking stretch, with federal agencies shuttered for over five weeks due to a funding impasse between the White House and congressional Democrats.
The prolonged stalemate has already rattled markets, triggering volatility across equities and digital assets.
“The US government has now entered day number 35, making it the LONGEST in history. Since the shutdown began on October 1, the US government has borrowed $600 BILLION worth of debt. That’s +$17 billion PER DAY,” wrote the Kobeissi Letter.
Trump advisers used the press briefing to contrast what they called the administration’s “pro-growth digital policy” with what they described as Democratic obstructionism on both spending and innovation.
