Donald Trump’s relationship with the crypto world could be even deeper if his report with Binance somehow leads to a partnership with the world’s largest cryptocurrency exchange.
The talk could bring one of the biggest players in the world of digital assets and one of the US presidents who pledged to make America “planetary crypto capital,” as explained last week in a separate story from Wall Street Journal and Bloomberg.
Trump has already signed an executive order that benefits the industry and is committed to helping the industry push through the laws it likes. At the same time, he has existing interest in other Crypto ventures that will benefit if the value of digital assets rises.
Previous discussions with Binance have included stocks in Binance’s US arm Trump family, according to the Wall Street Journal. In 2023, Zhao pleaded guilty to violating US money laundering requirements.
Binance founder and former CEO Changpeng Zhao pleaded guilty to violating US law by failing to implement a program to prevent money laundering and arrived for a ruling in U.S. District Court in April 2024 (Reuters/Deborah Bloom) ・Reuters/Reuters
Bloomberg reported that the conversation included the possibility of Stablecoin from Binance and World Liberty Financial, a crypto business with ties to the Trump family and Middle Eastern presidential envoy Steve Witcoff. Stablecoins are fixed to other assets such as dollars.
Trump administration officials denied Witcoff’s involvement in the Wall Street Journal, saying he was in the process of selling out of his business connections.
Zhao of Binance, social media platform X, has rejected discussions about a business contract with World Liberty Financial or a merciless deal with anyone linked to the Trump administration. He also denied that Binance had purchased a Crypto Token from World Liberty.
In an X’s post, World Liberty called the report from the Wall Street Journal and Bloomberg “basically unfounded” and never elaborated on the details.
His close relationship with Binance would give the President even more exposure to the crypto world, if that happened, to provide the promises he made to the industry during his first 100-day tenure.
Just before Trump’s inauguration, his team launched an official memecoin for the 47th President (Trump) and launched one person for First Lady Melania Trump (Melania) on the Solana Blockchain.
According to disclosures on Meme Coin’s website, Trump Organization affiliates Fight Fight Fight LLC and CIC Digital LLC are eligible for 80% of Meme Coin’s total supply under a three-year unlock schedule.
His name Trump Media & Technology Group (DJT) also wants to launch a Bitcoin Exchange Trade Fund, which says it will allocate up to $250 million in cash to cryptocurrency and other investments in a venture called Truth.fi.
Regarding world freedom, Trump and his sons are supporters of that crypto project launched in 2024, and promote it on social media. The president is listed as “Chief Crypto’s Advocate” on the World Liberty website, with his sons Eric, Donald Jr. and Baron holding the title “Web3 Ambassador.”
In exchange for that promotion, the Trump family-owned limited liability company will receive 22.5% of the crypto tokens for the project and 75% of its net revenues after global freedom earned $30 million.
People pass by a cryptocurrency exchange office with a screen featuring President Trump, who holds cryptocurrency coins in Hong Kong. (Mladen Antonov/AFP by Getty Images) ・Muraden Antonov via Getty Images
Witkov, the president’s envoy to the Middle East and his sons Zach and Alex, are all listed as co-founders of World Freedom. Zach Witkoff was part of an exclusive group of crypto executives invited to the White House’s first Crypto Summit on March 7th.
The President does not require under law to sell his holdings while in office, even if there is a potential conflict of interest. The law passed in 1977 requires him to submit an annual disclosure that lists his income, assets and obligations.
In fact, since taking office, Trump has brought some of his promises to the industry through two executive orders.
Initially, the US banned the creation of central bank digital currencies, established a presidential working group that crosses the government on digital assets, and rolled the ball with his greater pledge to the industry.
His second order called for the government to establish Bitcoin Reserve, separate crypto stockpiles, and seed them with seized and confiscated digital assets that have not yet been sold by the federal government.
The president has also pledged to enable the development of a federal regulatory framework for the crypto market. This hopes the industry will make business easier in the US and become closely tied to Wall Street.
On Thursday, the Senate Banking Committee took one step in that direction by advancing the Stubcoin Act, which sets rules on how banking regulators oversee the companies that issue such coins.
From left, Bo Hines, a member of the Presidential Advisory Council of Commerce Howard Lutnick, Treasury Secretary Scott Bescent, President Trump, White House AI and Digital Assets, will be attending the White House Crypto Summit on March 7th. ・Associated Press
Binance, which had been in conflict with the US government during the Biden administration, has already taken one break during Trump’s second term. Last month, the SEC put on a civil lawsuit against Vinance filed by Zhaa in June 2023, alleging a securities violation.
In November 2023, Binance pleaded guilty in US federal court to money laundering, unauthorized remittances and sanctions violations.
He was fined $4.3 billion. CEO Zhao then paid a $50 million fine and agreed to resign as CEO of the company, but was allowed to maintain majority ownership as part of the transaction.
In April 2024, Zhao was sentenced to four months in prison after pleading guilty to violating the US anti-money laundering law. Currently, Binance does not grant official jurisdiction over its headquarters.
On Wednesday, the company said it was receiving its first institutional investment from Abu Dhabi-based AI and Advanced Technology Investor MGX. The $2 billion in shares will be paid out in Stablecoin.
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David Hollerith is a senior reporter on Yahoo Finance, covering banking, crypto and other areas of finance.
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