Binance seeks to loosen U.S. oversight and forge ties with Trump family crypto venture

Representatives from Binance, the world’s largest cryptocurrency exchange, met with U.S. Treasury officials to seek the removal of a court-appointed monitor overseeing its compliance with anti-money-laundering laws. 

Simultaneously, the company has been in discussions to partner with a Trump family-backed cryptocurrency initiative, marking a notable alignment between the embattled crypto exchange and the former president’s inner circle.

The discussions, confirmed by individuals familiar with the matter, signal Binance’s effort to regain traction in the U.S. market following its $4.3 billion settlement with federal regulators in 2023 for facilitating illicit financial activity. 

Binance pushes to end U.S. oversight as Trump family eyes strategic crypto alliance

According to people familiar with the meeting, Binance CEO Richard Teng and Chief Legal Officer Eleanor Hughes requested that Treasury officials remove the monitorship or reduce its duration and scope. The current oversight requires extensive oversight from the Treasury and the Justice Department.

At the same time, Binance is exploring a potential listing of a new dollar-pegged stablecoin, USD1, launched by World Liberty Financial, a venture backed by former President Donald Trump’s family. The Trump-affiliated crypto firm aims to capitalize on Binance’s global reach of over 250 million users and its daily trading volume of $65 billion to propel USD1 into a major player in the digital currency ecosystem.

The talks illustrate an emerging alliance between Binance and Trump-world figures. Binance, facing regulatory pressure and operational restrictions in the U.S., could benefit from political goodwill. Trump, who has already pardoned several crypto industry figures, may be poised to ease regulatory scrutiny on digital assets.

In return, the Trump family gains financially from increased circulation of USD1. Stablecoin issuers like Tether made over $13 billion in profits last year, largely from interest income on reserves. Binance’s support could drive massive adoption of USD1 and potentially bring in similar windfalls.

Sources told the Wall Street Journal that Trump family representatives have also talked with Binance about acquiring a stake in Binance US, the exchange’s faltering U.S. subsidiary. Binance founder Changpeng “CZ” Zhao, who pleaded guilty to federal charges and served a four-month prison term, is reportedly seeking a presidential pardon. This move could be facilitated by strengthening ties with the Trump camp.

Crypto diplomacy in Abu Dhabi sparks Binance–Trump alliance

The Binance and Trump Family relationship was catalyzed at a high-level crypto conference in Abu Dhabi last December, shortly before Trump’s second inauguration. In a private VIP room dubbed the “Whale Only” lounge, Zhao mingled with Eric Trump and other Trump associates, including Steve Witkoff, who is a special Middle East envoy. 

Eric Trump used the opportunity to promote World Liberty and the “digital-currency golden age” under his father’s renewed leadership.

Since then, business discussions between Binance and World Liberty Financial have accelerated. The exchange is also reportedly fine-tuning its internal anti-money-laundering controls, though some insiders claim these efforts may weaken checks on high-risk users — a claim Binance denies.

Binance’s interest in political alliances extends beyond potential partnerships. The company reportedly established internal task forces to prepare for a U.S. reentry under a second Trump administration and to pursue a pardon for Zhao. Binance’s past dealings with figures like Justin Sun — founder of the Tron blockchain and a major investor in World Liberty — have also raised eyebrows. Over half of last year’s illicit crypto activity reportedly occurred on Tron.

Sun, who is facing SEC scrutiny, invested $75 million into World Liberty’s token earlier this year. Following the investment, the regulatory watchdog asked a federal court to pause its fraud lawsuit against him. As part of his plea deal, Zhao agreed to provide information to prosecutors about Sun’s activities, sources revealed.

Justice Department ends crypto oversight

The Justice Department recently announced the dissolution of its cryptocurrency unit and the suspension of corporate monitorships — the very mechanism currently overseeing Binance. This reflects a shift in the regulatory winds.

The “Ending Regulation by Prosecution” announcement suggests a broader rollback in crypto enforcement under the Trump administration.

A Treasury spokesperson confirmed the meeting with Binance was one of many held with industry stakeholders. A Binance spokesperson described the monitorships as “inefficient and costly burdens” and reaffirmed the exchange’s commitment to “supporting any government seeking to balance innovation with user protections.”

The spokesperson for World Liberty noted that USD1 aims to be “accessible for millions around the globe,” asserting that Binance is still an integral player in crypto’s global market. 

The White House declined to comment on whether Zhao or any other individuals are under consideration for presidential pardons.

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