This Week in Crypto: US prompts policy shifts, eyes CZ deal

Getting your Trinity Audio player ready...

Trump reportedly eyeing stake in Binance.US

There are rumors that the Trump family is in talks to acquire a stake in Binance.US, the American arm of the global digital currency exchange Binance. But beneath the surface, this potential deal appears to be more than just a business transaction—it could have significant political and personal motivations behind it.

According to reports, Binance’s majority owner and former CEO, Changpeng Zhao, has been seeking a presidential pardon. This raises questions about whether the Trump family’s proposed stake in Binance.US is part of a broader negotiation to secure that pardon.

From Trump’s perspective, a deal like this aligns with his administration’s push to position the United States as the global hub for cryptocurrency. Over the years, he has signed executive orders to advance the industry, publicly voiced support for crypto-related businesses, and even launched his own crypto products, including a memecoin. Taking ownership of a major exchange like Binance.US could be seen as another step in his effort to strengthen the industry’s presence in the U.S.

However, such a move raises ethical concerns. If Trump were to hold a stake in Binance.US while simultaneously shaping policies that impact cryptocurrency exchanges, it could lead to allegations of insider trading—an issue that, unfortunately, has become common in the crypto industry this year.

For CZ, securing a pardon would be transformative. His 2023 guilty plea for violating U.S. anti-money laundering (AML) laws has placed significant restrictions on his ability to conduct business. Being a convicted felon limits his ability to obtain investment, secure operational licenses, and expand into certain jurisdictions—including the U.S. A deal with the Trump family could be his way of overcoming these barriers and rebuilding the Binance empire.

4. Sorry to disappoint. The WSJ article got the facts wrong.

More than 20 people have told me they were asked by the WSJ (and another media), "Can you confirm that CZ made some deal for a pardon?"

They probably asked hundreds of people to have 20 people reach out to me. In… https://t.co/ELyDPmKD3G

— CZ 🔶 BNB (@cz_binance) March 13, 2025

However, after the story broke, CZ took to social media, denying any discussions of a Binance.US deal with Trump or his family. In a post on X (formerly Twitter), CZ claimed that the original report by The Wall Street Journal (WSJ) got its facts wrong, stating, “I have had no discussions of a Binance US deal with… well, anyone.”

While this could be a genuine denial, there’s always the possibility that this response is part of a broader communication strategy to take the deal off the public’s radar. It’s also possible that discussions were happening but didn’t progress as CZ had hoped, leading him to shut down the rumors publicly. On the contrary, CZ could just be telling the truth, and the nature of the conversations between the Trump family and Binance could have been entirely different from what was initially reported.

This is one of those instances where time truly will tell because if Binance does receive investment or CZ does get a pardon, we are very likely to hear about it, even if the former Binance CEO would prefer for those deals to fly under the radar.

The USA’s Strategic Bitcoin Reserve prompts global crypto policy shifts

Last week, the United States signed an executive order establishing a national BTC strategic reserve. Despite the market continuing to dump in spite of this news, this move marks a  step toward mainstream acceptance of cryptocurrency.

The impact of this decision is already being felt globally. Shortly after the U.S. announcement, China and Russia adjusted their stances on digital assets. The Chinese government clarified that cryptocurrency ownership is legal, while Russia’s central bank announced that it would allow investors to purchase digital assets under specific conditions.

This reaction highlights the role of geopolitical game theory in the evolution of digital finance. No country wants to lag behind in a sector that could prove essential in shaping the future of global financial systems. When the U.S. takes a bold step like stockpiling Bitcoin, other nations, especially its rivals, feel pressured to follow suit to remain competitive.

Domestically, the U.S. government has been taking steps to make the country a more attractive environment for cryptocurrency businesses. Under the Biden administration, regulatory uncertainty and aggressive enforcement actions kept many companies in a holding pattern, or worse, forced them to shut down their operations. But now, with a more crypto-friendly approach taking shape, we’re seeing a loosening of regulations, clearer policy frameworks, and an industry that is free to innovate and experiment.

3 crypto moves from the US government this week

This week, the U.S. government made three moves that could have a significant impact on U.S.-based cryptocurrency companies:

1. House votes to overturn IRS’s DeFi broker rule

In a 292-132 vote, the House of Representatives passed a resolution overturning the Internal Revenue Service’s (IRS) controversial decentralized finance (DeFi) broker rule. Initially implemented on December 30, 2024, under the Biden administration, this rule expanded the definition of “broker” to include DeFi platforms, requiring them to collect and report user transaction data.

Crypto industry leaders pushed back, arguing that the rule was not only difficult to implement given the anonymous nature of wallet addresses, but also an overreach that could stifle innovation. Now that the House has voted to repeal it, it will now move on to the Senate for another vote before ultimately landing on the president’s desk for the final sign off.

2. Trump’s executive order to ease crypto banking restrictions

Trump is allegedly preparing to sign an executive order aimed at rolling back restrictions that make it difficult for cryptocurrency companies to access traditional banking services. If enacted, this would be another pro-crypto move from the Trump administration, reinforcing the idea that the U.S. is committed to becoming a global leader in digital asset innovation.

For years, crypto companies have struggled to secure reliable banking partnerships due to regulatory concerns, especially those related to Know Your Customer (KYC), AML, and risk management. Loosening these restrictions could create new opportunities, allowing crypto firms to reap the benefits of having a stable banking partner in the traditional financial world that could help them integrate and offer their services into the broader economy.

3. SEC to abandon proposed crypto trading system registration rule

In another regulatory shift, the Securities and Exchange Commission (SEC) appears to be backing away from a proposal that would have required crypto companies to register as trading systems. During the International Bankers’ Conference, SEC Commissioner Mark Uyeda stated that he had asked SEC staff for options to abandon that part of the proposal which was initially proposed in 2022.

This further signals a shift away from the aggressive regulatory stance under former SEC Chair Gary Gensler, who pushed for broader oversight of the crypto sector. If the SEC officially abandons the rule, it would remove yet another regulatory hurdle that has stifled crypto businesses.

All three of these developments, regardless of if they have been finalized or are still in motion, point to the same trend: the U.S. government is actively making the country a more attractive place for cryptocurrency companies to do business.

With less regulatory red tape, fewer legal threats, and policies designed to encourage innovation rather than stifle it, the U.S. is trying to position itself as a dominant force in the global crypto economy.

Watch: Reggie Middleton on DeFi, booms/busts & crypto regulation