BINANCE. U.S. DENIES POLITICAL INVOLVEMENT AFTER LISTING TRUMP-LINKED STABLECOIN USD1

Binance. The U.S. has refuted claims from a U.S. senator suggesting that its recent decision to list the Trump-linked USD1 stablecoin was politically motivated.

On Tuesday, Senator Chris Murphy (D-CT) accused the exchange of favoritism, claiming the listing was a form of payback following former President Donald Trump’s pardon of Binance founder Changpeng Zhao last week.

“One week after Trump pardoned Binance’s owner for a range of financial crimes, Binance started promoting ‘Trump crypto,’” Murphy wrote on X (formerly Twitter), referencing the platform’s announcement about the USD1 listing.

Solana and Ethereum Glow Like Bitcoin Eyes at $70,000

In response, Binance.US issued a statement emphasizing that its decision was purely business-related and had no political intent. The exchange noted that USD1 and its issuer, World Liberty Financial (WLFI), are already listed on more than 20 U.S. platforms, including Coinbase, Robinhood, and Kraken.

“Both USD1 and WLFI went through our standard listing review process long before recent political developments,” Binance.US said. “It’s unfortunate that even routine business decisions are now being unfairly politicized.”

USD1 is a U.S. dollar–pegged stablecoin issued by World Liberty Financial. It is currently the world’s sixth-largest stablecoin, with a market capitalization of approximately $2.97 billion.

Trump’s Pardon of Zhao Draws Political Backlash

Former President Donald Trump’s recent pardon of Binance co-founder Changpeng Zhao has sparked widespread criticism from lawmakers. Democratic Representative Maxine Waters condemned the move, claiming it followed months of lobbying by Zhao and his associates while “funneling billions” into World Liberty Financial.

“Trump is doing massive favors for crypto criminals who have helped line his pockets,” Waters said in an official statement.

THE CRYPTOCURRENCY MARKET IS HIGHLY ACTIVE, WITH BINANCE’S DAILY TRADES REACHING $80 BILLION.

Zhao, who pleaded guilty in 2023 to failing to maintain an effective anti-money laundering program, previously settled with U.S. authorities. Under the agreement, Binance admitted to criminal charges and paid more than $4.3 billion in penalties. In comparison, Zhao personally paid a $50 million fine and served four months in prison before his release last year.

Following the pardon, Zhao expressed gratitude to Trump, posting on X that he would “do everything we can to help make America the capital of crypto and advance Web3 worldwide.”

FAQs

1. Why is Binance.US facing political criticism over the USD1 stablecoin listing?

Binance. The U.S. came under fire after U.S. Senator Chris Murphy accused the exchange of showing political favoritism. He suggested the listing of the Trump-linked USD1 stablecoin was a reward for former President Donald Trump’s recent pardon of Binance founder Changpeng Zhao.

2. How did Binance.US respond to the allegations?

Binance. The US denied any political motives behind the listing, saying the decision was made through its normal review process. The exchange clarified that both USD1 and its issuer, World Liberty Financial, had been evaluated and approved well before the political controversy began.

3. What is the USD1 stablecoin, and who issues it?

USD1 is a stablecoin pegged to the U.S. dollar, issued by World Liberty Financial, a company linked to Trump and his family. It is currently the sixth-largest stablecoin in the world, with a market capitalization of roughly $2.97 billion.

4. Why did Trump pardon Changpeng Zhao, and why did it cause backlash?

Former President Trump pardoned Zhao, who had pleaded guilty in 2023 for failing to maintain an effective anti-money laundering program at Binance. The move drew sharp criticism from lawmakers, including Rep. Maxine Waters, who accused Trump of helping “crypto criminals” after alleged lobbying and financial ties between Zhao and Trump-linked entities.