The Trump administration's surprise pardon of Binance founder Changpeng Zhao has sent shockwaves through the US crypto industry. The billionaire entrepreneur, who was convicted of failing to maintain an effective anti-money laundering program at Binance, was released from federal prison just over a year ago after spending four months behind bars.
In light of the pardon, some experts are warning that the Biden administration's crackdown on cryptocurrency could intensify, leading to a " scorched earth" policy for crypto exchanges. "The [pardon] doesn't look good," said Azeem Khan, founder of crypto startup Miden. "There's going to be retaliation by a future Democratic regime."
Meanwhile, Nic Carter, general partner at crypto-focused VC firm Castle Island Ventures, believes that the pardon could have long-term consequences for the US crypto industry. "Trump 'doesn't care about the appearance of impropriety—at all,'" Carter said. "His sons have been so active in the crypto industry. This has been my main complaint about the Trump administration."
The pardon is also being seen as a move to revive Binance, which was forced to leave the US market after agreeing to pay a record $4.3 billion penalty. With its massive financial resources and global presence, Binance could pose a significant threat to smaller US-based crypto exchanges like Coinbase.
Coinbase has already taken steps to strengthen itself against heightened competition. The company has been on a shopping spree, acquiring several businesses and partnering with major players in the industry. "Competition is coming," said Khan. "I think that's why Coinbase has been so aggressive for some time now."
While some experts are concerned about the potential for nepotism and self-dealing in Trump's crypto activities, others believe that the pardon could have a net positive effect on the industry. "There's an ethnocentrism people in North America have about being the best," said Khan. "Coinbase is in many ways <em>the</em> company. But Binance is <em>the</em> company for the rest of the world."
As the US crypto exchange market continues to evolve, one thing is clear: the Trump administration's pardon of Changpeng Zhao has opened up a Pandora's box of potential consequences.
In light of the pardon, some experts are warning that the Biden administration's crackdown on cryptocurrency could intensify, leading to a " scorched earth" policy for crypto exchanges. "The [pardon] doesn't look good," said Azeem Khan, founder of crypto startup Miden. "There's going to be retaliation by a future Democratic regime."
Meanwhile, Nic Carter, general partner at crypto-focused VC firm Castle Island Ventures, believes that the pardon could have long-term consequences for the US crypto industry. "Trump 'doesn't care about the appearance of impropriety—at all,'" Carter said. "His sons have been so active in the crypto industry. This has been my main complaint about the Trump administration."
The pardon is also being seen as a move to revive Binance, which was forced to leave the US market after agreeing to pay a record $4.3 billion penalty. With its massive financial resources and global presence, Binance could pose a significant threat to smaller US-based crypto exchanges like Coinbase.
Coinbase has already taken steps to strengthen itself against heightened competition. The company has been on a shopping spree, acquiring several businesses and partnering with major players in the industry. "Competition is coming," said Khan. "I think that's why Coinbase has been so aggressive for some time now."
While some experts are concerned about the potential for nepotism and self-dealing in Trump's crypto activities, others believe that the pardon could have a net positive effect on the industry. "There's an ethnocentrism people in North America have about being the best," said Khan. "Coinbase is in many ways <em>the</em> company. But Binance is <em>the</em> company for the rest of the world."
As the US crypto exchange market continues to evolve, one thing is clear: the Trump administration's pardon of Changpeng Zhao has opened up a Pandora's box of potential consequences.
, like what even is happening with Binance and all those billionaires involved 
? Some ppl r saying it's gonna lead to a major crackdown on crypto exchanges by the Biden admin, which would be super bad for the industry 
, but others think it could actually help Coinbase get stronger against competition 
. I just wish Changpeng Zhao wouldn't have gotten off scot-free 
, seems kinda unfair considering he got in trouble for not having an effective anti-money laundering program 
.
it's all pretty crazy cuz zhao was convicted of failing to prevent money laundering at binance...anyway i feel like we can't know what's gonna happen for sure, but maybe this pardon is just an opportunity for smaller exchanges like coinbase to shine? 
. Like, if the Biden admin is gonna crack down hard on crypto, we might see some major shakeups in the industry 
. On one hand, I get why the pardon is a big deal - Binance is like the 800-lb gorilla in the room 
. But on the other hand, if Coinbase is already buying up companies to stay competitive, that's not exactly healthy for competition 
.
Do you guys think the Biden admin is going to try and crush crypto with a "scorched earth" policy? 
. Can't we just have some regulation that works for everyone, not just the big players like Binance 
I'm all for some regulation, but this sounds like a blanket statement. Where's the evidence?
.
. I mean, think about it - Binance just got a free pass after violating anti-money laundering laws, and now they're gonna come back stronger than ever? It's like the US government is trying to create a monopoly on crypto exchanges. And with Trump's pardon, they're basically saying "don't care about the rules". Coinbase is already stockpiling assets like there's no tomorrow 
.
The whole industry is already super competitive, but with Trump's boys being all over it, things are about to get even more heated. And don't even get me started on Coinbase trying to strongarm its way to the top 
and i'm low-key living for it 
but seriously, if joe biden starts cracking down harder on crypto, it's gonna be rough 
. I'm not surprised that some people are worried about nepotism and favoritism, but at the same time, it's also possible that this could have a net positive effect on the industry 
.
and now it's game on for Coinbase