A massive $2 billion investment in Binance, backed by a Trump family-linked stablecoin, is shaking Washington.

Senators are demanding an investigation targeting Donald Trump and Changpeng Zhao. Amid conflicts of interest, a potential presidential pardon

A massive $2 billion investment in Binance, backed by a Trump family-linked stablecoin, is shaking Washington. Senators are demanding an investigation targeting Donald Trump and Changpeng Zhao.

Amid conflicts of interest, a potential presidential pardon, and foreign influence, a politico-crypto shock threatens the American regulatory balance.

The Opaque Link Between Binance and the Trump Family

According to a letter addressed to the Treasury and the Department of Justice, Democratic senators are requesting an investigation into the ties between the Binance platform and Donald Trump.

This initiative follows a report by The Block highlighting an Emirati fund, MGX, investing $2 billion in Binance. This transaction was allegedly carried out using the stablecoin USD1, issued by World Liberty Financial, an entity supported by the Trump family.

This setup raises questions about the origin of the funds, their traceability, and the legitimacy of such a financial channel. A crypto platform facing legal difficulties and a presidential family financially exposed form an explosive cocktail for regulatory stability.

Binance’s Legal Shadow Resurfaces

The senators' letter mentions November 2023, when the exchange admitted to major violations of US anti-money laundering laws, leading to a record fine of more than $4 billion.

In this context, senators are calling for clarifications on:

The fact that Binance is again associated with an opaque operation could indicate governance that remains fragile and poorly compatible with US regulatory standards.

A Presidential Pardon for Changpeng “CZ” Zhao?

Unconfirmed reports mention a presidential pardon request submitted by Changpeng Zhao (CZ) to Donald Trump. If confirmed, this initiative would raise a dual issue:

The alleged closeness between CZ and the Trump family strengthens the hypothesis of a strategic use of crypto for political purposes.

Binance’s image, already tarnished, could suffer long-term damage from presidential instrumentalization, potentially causing BNB’s value to drop.

Towards a Paralyzed Stablecoin Regulation?

While a legal framework for stablecoins was under discussion in Congress, the bill was rejected. This blockade could be directly linked to suspicions of conflict of interest in the Trump-Binance affair.

By blocking this initiative, the Senate aims to:

The resulting regulatory uncertainty could slow down initiatives from serious stablecoin issuers in the United States.

What Future for US Crypto Regulation under Trump?

Senators have set May 21 as the deadline to get answers from the Treasury and the DoJ. This deadline could mark a decisive moment. Three scenarios are emerging:

Whatever the outcome, this Binance-Trump episode shows that cryptocurrencies are no longer just a financial issue. They have become a lever of influence at the highest level of the state.

Transparency and independence of power are now at the heart of the debate.

Already mired in the scandal provoked by the revelations of a pro-XRP former collaborator, Donald Trump faces a new political bombshell. This time, it involves Binance and raises suspicions of murky alliances between crypto spheres and power. If institutions do not quickly clarify their positions, the entire credibility of American financial regulation risks being weakened.