Crypto Firestorm: Binance.US Hits Back at Trump Pardon Allegations Over USD1 Listing

 

Binance.US Defends Listing Process Amid Political Allegations Over USD1 Stablecoin

Binance.US has publicly defended its asset listing process following allegations by U.S. Senator Chris Murphy that the cryptocurrency exchange’s decision to list the USD1 stablecoin was politically motivated. The accusations suggest the move was linked to former President Donald Trump’s reported pardon of Binance founder Changpeng “CZ” Zhao — a claim the exchange has firmly denied.

The controversy, which erupted on Capitol Hill earlier this week, has once again placed the intersection of cryptocurrency and politics under the microscope, reigniting debates about transparency, influence, and fairness in digital asset regulation.

Binance.US Rejects Claims of Political Favoritism

In an official statement released Thursday, Binance.US described the senator’s claims as “inaccurate and misleading,” asserting that the decision to list USD1 and WLFI tokens followed a thorough internal review process consistent with industry norms. The exchange emphasized that the listing of both tokens was made “on the basis of business merit, not political considerations.”

“Our listing committee operates independently and evaluates every digital asset based on security, liquidity, utility, and regulatory compliance,” a Binance.US spokesperson said. “Any suggestion that this decision was influenced by political events is categorically false.”

According to the company, USD1 has already been listed on more than 20 regulated U.S. exchanges, including Coinbase, Robinhood, and Kraken, prior to its appearance on Binance.US. The exchange described its decision as part of “a competitive business environment” aimed at ensuring users have access to the most widely used stablecoins.

The company further clarified that the listing of USD1 was vetted using its standard asset evaluation framework, which assesses each token based on technical architecture, project transparency, compliance with U.S. laws, and potential utility in the marketplace.

Binance.US Highlights Transparency and Compliance

Binance.US reiterated its commitment to maintaining transparency in its operations, especially as regulators continue to scrutinize the cryptocurrency industry. The company stressed that it has implemented strict due diligence processes to comply with the Securities and Exchange Commission (SEC), Financial Crimes Enforcement Network (FinCEN), and other U.S. regulatory bodies.

In its statement, the company said it found the senator’s accusations to be “a distortion of normal business practices” that risk undermining public trust in legitimate crypto operations.

“It’s concerning to see political leaders frame market activity through a partisan lens,” the company said. “Crypto should be regulated fairly, not politicized.”

Industry observers say the episode underscores growing tension between lawmakers and crypto firms as the U.S. struggles to establish clear regulatory frameworks for digital assets. Binance.US, the American arm of the global Binance exchange, has spent much of the past year restructuring its operations to demonstrate independence from its parent entity and strengthen compliance oversight.

Political Fallout: Allegations of Favoritism and Influence

The political storm was triggered last week when Senator Chris Murphy accused Binance.US of rewarding former President Trump through its listing of USD1, a stablecoin issued by World Liberty Financial (WLF) — a company reportedly linked to Zhao’s associates. Murphy suggested the timing of the listing was “highly coincidental,” coming just weeks after Trump’s controversial pardon of the Binance founder.

“It raises serious questions about whether major crypto firms are using financial incentives to curry political favor,” Murphy said in a press statement. “Americans deserve to know whether these listings are business-driven or politically motivated.”

The senator’s comments quickly drew national attention, with Democrats calling for greater transparency in how digital assets are approved for trading on U.S. exchanges.

Representative Maxine Waters, a longtime advocate for financial accountability, expanded on Murphy’s claims, alleging that Zhao and his affiliated companies had spent “billions lobbying for favorable treatment” under the guise of innovation. She described World Liberty Financial as “a conduit for political influence dressed up as a fintech revolution.”

The USD1 Stablecoin: Growth and Market Position

World Liberty Financial’s USD1 stablecoin has quickly gained prominence in the crypto market. Pegged 1:1 to the U.S. dollar, the token has achieved a circulating market capitalization of $2.97 billion, positioning it among the top five stablecoins globally by trading volume.

According to Binance.US, the stablecoin’s robust adoption justified its inclusion in the platform’s trading portfolio. Analysts have described USD1 as a key competitor to Tether’s USDT and Circle’s USDC, two long-standing leaders in the stablecoin market.

A recent report from CryptoCompare noted that USD1’s user growth surged by 40% in the past three months, driven largely by partnerships with several fintech firms and decentralized finance (DeFi) applications. The report concluded that USD1’s integration across multiple exchanges indicates “market validation rather than political favoritism.”

Industry Experts Weigh In

Industry experts have offered mixed reactions to the controversy. Some analysts argue that the senator’s allegations highlight legitimate concerns about the opacity of crypto listing processes, while others believe the political framing distracts from the real progress the industry has made in governance.

Dr. Amelia Vaughn, a blockchain policy researcher at Georgetown University, said the situation reflects “a clash between political narratives and technological realities.”

“It’s easy for politicians to frame crypto decisions as partisan,” Vaughn noted. “But most listing decisions today are handled by independent committees with clear internal procedures. The bigger issue is the absence of federal clarity around crypto regulation.”

Meanwhile, James Tully, a former compliance officer at Coinbase, said the allegations underscore how “crypto firms are still fighting for legitimacy in Washington.”

“Binance.US is walking a tightrope,” Tully explained. “They want to prove they can operate legally and independently while facing skepticism from both regulators and lawmakers. Episodes like this don’t help, even if the accusations turn out to be unfounded.”

Binance.US Reaffirms Neutrality and Compliance

In its concluding remarks, Binance.US reaffirmed its stance that all digital asset listings undergo a rigorous, multi-stage process independent of any political or corporate influence. The company stated that every project submitted for listing is evaluated using “objective, pre-set frameworks” covering security audits, developer background checks, and financial stability metrics.

“We remain committed to operating within U.S. laws and providing transparent, compliant access to digital assets,” the statement read. “Our mission is to help build a fair, innovative, and trustworthy crypto market for American users.”

The company also expressed concern that politicizing crypto decisions could stifle innovation and discourage legitimate players from entering the U.S. market. As global competition for blockchain innovation intensifies, Binance.US emphasized the importance of separating regulatory oversight from political agendas.

Broader Implications for the Crypto Market

The dispute over USD1’s listing could have broader implications for the crypto industry’s relationship with Washington. Analysts warn that political controversies, particularly involving high-profile figures like Trump and Zhao, could slow progress on bipartisan legislation meant to establish consistent crypto oversight.

As of October 2025, Congress remains divided over the Digital Asset Market Structure Bill, which would define clear boundaries between securities and commodities in the digital economy. Without such clarity, experts say, accusations like those leveled at Binance.US will continue to surface.

Despite the ongoing political noise, Binance.US continues to expand its presence in the U.S. market, recently surpassing 6 million registered users and increasing its spot trading volume by 27% in Q3 2025, according to industry tracker Kaiko.

Whether this latest controversy fades or fuels further scrutiny, one thing remains clear: the delicate balance between innovation and accountability in the crypto world is far from settled.

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Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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