White House Press Secretary Karoline Leavitt announced Tuesday that President Donald Trump’s pardon of Binance founder Changpeng “CZ” Zhao underscores his “commitment to financial freedom, innovation, and fair treatment” for entrepreneurs in the crypto industry. Leavitt criticized the previous Biden administration for launching a “regulatory crusade” that forced blockchain talent and investment overseas, framing the pardon as part of a wider effort to “end Biden’s war on crypto” and restore America’s leadership in digital innovation.
“President Trump exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency,” Leavitt said. “This administration will support innovation — not criminalize it.”
CZ, who previously pleaded guilty to compliance failures at Binance and served a four-month prison sentence, remains a divisive figure in global finance. While critics argue that the pardon undermines previous efforts by the Justice Department to tighten crypto oversight, supporters view it as a strong signal of Trump’s pro-crypto stance and intent to make the U.S. a global hub for blockchain growth.
The move comes shortly after Trump denied knowing CZ personally, telling reporters, “I don’t know who he is… I heard it was a Biden witch hunt.”
The announcement coincides with the longest U.S. government shutdown in history, now surpassing 35 days, as a budget deadlock continues between the White House and congressional Democrats. The shutdown has shaken financial markets, with analysts noting increased volatility across equities and digital assets.
“The U.S. government has borrowed $600 billion since October 1 — roughly $17 billion per day,” noted the Kobeissi Letter. Trump advisers used the moment to emphasize the administration’s “pro-growth digital policy,” contrasting it with what they described as Democratic obstruction on spending and innovation.
