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Binance.US reacts to accusations from a US senator claiming its decision to list USD1, a Trump-linked stablecoin, was politically motivated. The exchange has made it clear that the listing followed standard business procedures approved by its listing committee prior to any political events occurring.
On Tuesday, Senator Chris Murphy alleged that Binance’s listing of USD1 was a reward for former President Donald Trump’s pardon of Binance founder Changpeng Zhao. The pardon was issued a week earlier. Murphy wrote on X that Binance began promoting ‘Trump crypto’ soon after Zhao’s release, suggesting a direct link between the two events.
The following day, Binance.US addressed the claims on X, asserting that USD1 and its issuer, World Liberty Financial (WLFI), had already been approved for listing through the company’s normal processes. The exchange described the accusations as “unfair politicization” of standard business operations.
USD1, pegged to the U.S. dollar, is issued by WLFI, an entity associated with Trump’s financial ventures. The token currently ranks as the world’s sixth-largest stablecoin, holding a market capitalization of about $2.97 billion.
Binance.US explained that USD1 and WLFI tokens are available across over 20 American trading platforms. These include leading exchanges like Coinbase, Robinhood, and Kraken, reinforcing its stance that the listing followed industry norms.
According to Binance.US, its internal review process had cleared both assets long before Trump’s pardon of Zhao. The firm reaffirmed that its decision was driven by compliance standards and market readiness rather than politics. The company stated, “This was a business decision and nothing more.”
The controversy intensified as Democratic lawmakers questioned the potential ties between Binance and Trump-linked projects. Representative Maxine Waters criticized Trump’s pardon, calling it a result of Zhao’s lobbying efforts and alleged financial ties with WLFI. She accused Trump of granting favors to individuals involved in major crypto violations.
In 2023, Zhao pleaded guilty to failing to implement adequate anti-money laundering controls. Binance also admitted to federal violations, agreeing to pay more than $4.3 billion in penalties. Zhao personally paid a $50 million fine and served four months in prison before his release last year.
After his pardon, Zhao expressed appreciation to Trump on X, stating his intent to help make the U.S. “the capital of crypto.” His remarks reignited debates about the intersection of politics and digital finance.
The listing controversy has fueled broader discussions about transparency and governance within crypto markets. Critics argue that the timing of the USD1 announcement raises questions about Binance’s impartiality and its relationship with politically affiliated projects.
Observers now wonder if regulators will probe deeper into politically connected crypto listings. When a major exchange lists assets tied to high-profile figures, public trust and neutrality become critical to market integrity.
As scrutiny grows, one question remains central: can digital-asset exchanges maintain independence amid increasing political and regulatory pressures?
Binance.US maintains that its USD1 listing followed standard procedures, dismissing claims of political favoritism linked to Trump’s pardon of Zhao. The exchange’s defense highlights the growing pressure for transparency and fairness in politically connected cryptocurrency listings.
