Did President Trump just issue another big, bullish catalyst for cryptocurrencies?
On Oct. 23, President Trump signed a pardon for Changpeng Zhao, founder and former CEO of the Binance cryptocurrency exchange platform. Zhao had pled guilty to money laundering charges in 2023 in connection with failure to maintain anti-money laundering standards with the trading exchange.
While Zhao had already completed a four-month prison term in September 2024, the pardon could have some significant implications for the broader crypto market. For starters, Binance could now be cleared to return its base of operations to the U.S. — and there are other reasons to think that the pardon could be a bullish catalyst for the cryptocurrency market in 2026.
Speaking on the pardon last week, White House press secretary Karoline Leavitt said that the prosecution of Zhao was part of a “war on cryptocurrency” carried out by President Joe Biden’s administration. She also stated that the Biden administration’s “war on crypto is over.”
In a post to X, Zhao stated that he was “deeply grateful” for the pardon and that he and his team would do everything to possible to “help make America the Capital of Crypto.” The Binance founder has notably been a supporter of crypto companies and initiatives connected to the Trump family in recent months.
While reactions to the recent pardon may be somewhat divided along political lines, the development appears to be another bullish indicator for the crypto market. The Trump administration has taken some significant steps to advance the cryptocurrency industry, and the pardoning of Zhao is the latest indication that high levels of support from the executive branch are likely to continue through the president’s second term.
Along with news that the U.S. and China have established a rough framework for key elements of a trade deal ahead of Trump’s meeting with Chinese President Xi Jinping, news that Zhao had been pardoned has helped power recovery momentum in the crypto market following a stretch of sell-offs. As of this writing, Bitcoin (BTC +1.65%) is up approximately 3.5% over the last week. Meanwhile, Ethereum’s token price has risen approximately 5%, and XRP is up an even more impressive 8.5%. The BNB (BNB +1.72%) token issued by Binance is up 4% across the stretch.
Of course, there are factors beyond support from the Trump administration that will continue to shape valuations across the cryptocurrency market. Geopolitical dynamics including the U.S.’s relationship with China and macroeconomic catalysts including inflation and interest rates will likely play key roles in shaping crypto prices.
In other words, Trump’s move isn’t a clear sign that the crypto market will keep rallying through 2026 — but it does seem to be a bullish development for crypto holders.
