Senators Elizabeth Warren, Adam Schiff, and Jeff Merkley urged the Senate to take up a resolution condemning President Donald Trump’s pardon of Binance founder Changpeng ‘CZ’ Zhao. They stated that the action undermines the rule of law and fosters corruption in the cryptocurrency sector. The sponsors asked for unanimous consent to bring the measure to the floor for debate and a vote.
Zhao pleaded guilty in 2024 to violating the Bank Secrecy Act. He then served a four-month sentence for failing to maintain an effective anti-money laundering program at Binance. Furthermore, the exchange also admitted criminal violations and agreed to pay more than $4 billion. Lawmakers from both parties raised concerns that Binance facilitated illicit finance, including terrorist funding and child exploitation networks.
Senator Warren argued that the pardon rewarded a convicted executive and risked national security and financial stability. She said the decision signals that wealthy allies can secure special treatment.
Seven Democratic senators, including Warren, Bernie Sanders, Richard Blumenthal, and Mazie Hirono, sent a letter to Attorney General Pam Bondi and the Department of Justice. They sought to understand the rationale behind the pardon and its impact on law enforcement. They warned that the action could erode public trust and embolden crime in the crypto sector.
The group cited reports linking Binance and Trump-affiliated ventures. They noted that Abu Dhabi’s MGX settled a $2 billion Binance stake using USD1, the stablecoin issued by Trump-linked World Liberty Financial, and requested a DOJ review of any potential influence arising from those financial ties.
They also referenced claims that Binance spent approximately $740,000 on lobbying efforts tied to Trump associates and Zhao’s attorney, Teresa Goody Guillén, before the pardon. The senators said those reports raise concerns about political favoritism and the integrity of the clemency process.
The Warren-backed resolution would formally denounce the pardon and call for stronger congressional oversight of future clemency decisions. Warren warned that if Republicans block the measure, they will share responsibility for enabling misconduct. The effort to fast-track the measure faces resistance, yet it could still force a public vote.
The administration defended the pardon, stating that Zhao had suffered under the prior administration’s “war on cryptocurrency.” Officials framed the decision as support for US leadership in the crypto sector. The debate has renewed scrutiny of crypto firms’ links to political figures, while lawmakers continue to push for more explicit rules on financial crimes and on presidential pardon powers.
Senators also flagged ongoing oversight of Binance’s plea compliance and its US market access. Further hearings on crypto policy may follow this vote.
Also Read: Trump Announces Pardon for "CZ" — Seize the BNB Opportunity with DeLeionCapital