TLDR
- BNB token hit $1,000 for first time, becoming fifth-largest cryptocurrency by market cap
- CZ removed “ex-@binance” from X profile, fueling Trump pardon speculation
- Polymarket pardon odds peaked at 64% before settling at 45%
- Senate Democrats questioned AG about potential Binance settlement changes
- Reports suggest Binance seeking to drop compliance monitor requirement
The cryptocurrency market witnessed a historic milestone as Binance’s BNB token broke through the $1,000 barrier for the first time. This surge propelled BNB past Solana to claim the fifth position among cryptocurrencies by market capitalization.
The rally coincided with growing speculation about a potential presidential pardon for former Binance CEO Changpeng “CZ” Zhao. Market participants noticed Zhao had quietly removed the “ex-@binance” designation from his X profile this week.
This profile change sparked intense betting activity on Polymarket, where odds for a Trump pardon reached an all-time high of 64% on Saturday. The odds have since moderated to 45% but remain elevated compared to previous levels.
Zhao stepped down as Binance CEO in November 2023 as part of a plea agreement with US authorities. He served four months in prison after pleading guilty to money laundering charges related to insufficient anti-money laundering programs at the exchange.
Political Pressure Mounts
Democratic senators have raised concerns about the Trump administration’s relationship with Binance. Senators Elizabeth Warren, Richard Blumenthal, and Mazie Hirono sent a letter to Attorney General Pam Bondi questioning potential modifications to the original enforcement agreement.
The lawmakers specifically cited reports that Binance executives have met with Treasury Department officials. These meetings allegedly discussed altering the 2023 settlement that required $4.3 billion in penalties and three years of compliance monitoring.
Bloomberg News reported that Binance is negotiating to remove its independent compliance monitor. This monitor represents a key oversight mechanism from the original settlement agreement.
The senators also highlighted financial connections between the Trump family and Binance through World Liberty Financial. This cryptocurrency venture has strengthened its Binance ties since May 2024.
Regulatory Environment Shifts
The Trump administration has adopted a markedly different approach to cryptocurrency regulation compared to its predecessor. The Securities and Exchange Commission dropped its lawsuit against Binance in May, signaling a shift toward industry-friendly policies.
President Trump has already granted pardons to several cryptocurrency figures, including Silk Road founder Ross Ulbricht and BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed.
Current Binance CEO Richard Teng has led the exchange since Zhao’s departure. The company continues operating under the compliance monitoring requirements established in the 2023 settlement.
Zhao confirmed in May that he directed his lawyers to pursue a presidential pardon. When he stepped down, Zhao stated he had “no plans to return to the CEO position,” though a pardon could potentially change this situation.
The BNB token’s breakthrough above $1,000 reflects broader market optimism about Binance’s regulatory prospects. Trading volumes have increased as investors position for potential policy changes under the new administration.
