Executives from Binance met senior U.S. Treasury officials last month to urge a loosening of government oversight over the cryptocurrency exchange. During the same meeting, they explored a potential business partnership with former U.S. President Donald Trump’s crypto initiative, World Liberty Financial, according to the Wall Street Journal.
Binance CEO Richard Teng and Chief Legal Officer Eleanor Hughes led the meeting. They urged officials to terminate or significantly reduce the monitorship overseeing Binance’s compliance with anti-money laundering (AML) laws. The monitorship, imposed as part of a $4.3 billion settlement in November 2023, had installed an independent monitor to ensure Binance followed U.S. regulations.
This request signals Binance’s attempt to move beyond its legal troubles and restore its position as a trusted player in the U.S. market. However, the meeting stirred controversy, particularly due to the political context surrounding World Liberty Financial and Trump’s involvement.
The Push to End Monitorship
Richard Teng and Eleanor Hughes asked Treasury officials to either eliminate or scale back the existing monitorship. According to insiders, Binance believes it has taken significant corrective steps since November 2023. The company hired compliance professionals, improved its know-your-customer (KYC) policies, and stopped servicing unverified U.S. customers.
Despite these actions, the monitorship remains a binding part of the legal settlement. The Treasury Department imposed the oversight after Binance and its former CEO Changpeng Zhao admitted to violating AML rules. The monitor’s role ensures Binance enforces strict compliance standards and prevents future breaches.
By pushing for a rollback, Binance aims to regain strategic flexibility. The company believes the monitorship restricts its ability to operate freely, particularly in the competitive U.S. crypto environment. Officials inside the Treasury, however, remain cautious. They see Binance’s past violations as severe and worry about backsliding if oversight lifts prematurely.
A Potential Alliance with Trump’s Crypto Venture
Alongside the request for reduced scrutiny, Binance’s leadership explored a partnership with World Liberty Financial, a crypto venture backed by Donald Trump. According to the Wall Street Journal, Binance discussed listing a new dollar-pegged stablecoin promoted by World Liberty Financial.
This stablecoin aims to rival existing options like USDT (Tether) and USDC (Circle). World Liberty Financial plans to position its token as a politically aligned, “America First” digital asset. Trump’s supporters in the crypto space believe this stablecoin can draw a nationalist investor base and disrupt the global dominance of existing dollar-backed tokens.
Binance appears interested in tapping into this market. Executives see value in collaborating with World Liberty Financial to strengthen Binance’s U.S. market presence. A listing of the token on Binance could generate significant trading volumes and cement a mutually beneficial alliance.
However, any partnership with Trump’s crypto venture could draw political backlash. Critics argue it would politicize crypto markets and invite regulatory scrutiny. Binance, already under a microscope, risks intensifying its challenges by aligning with politically sensitive figures.
Context: Changpeng Zhao’s Legal Saga
The meeting comes months after Binance’s founder, Changpeng Zhao (CZ), pleaded guilty to violating U.S. AML laws. In a historic $4.3 billion settlement, the U.S. Department of Justice (DOJ), Treasury, and Commodity Futures Trading Commission (CFTC) ended years of investigation into Binance’s global operations.
Zhao resigned as CEO in November 2023 and agreed to pay a $50 million personal fine. The court imposed a three-year monitorship to ensure Binance would comply with U.S. regulations. Richard Teng took over as CEO, vowing to implement reforms and clean up the exchange’s compliance failures.
In a separate report last month, the Wall Street Journal stated that Zhao had lobbied for a presidential pardon. He hoped Trump or his successor could help him avoid prison time or future legal liabilities. This effort, though unofficial, signals Zhao’s continued influence within Binance’s internal strategy.
Regulatory Landscape: A Challenging Environment
The U.S. crypto regulatory landscape remains tense. The Treasury Department, SEC, and CFTC continue to enforce strict actions against exchanges, DeFi platforms, and crypto lenders. In this environment, Binance’s attempt to lessen oversight faces significant hurdles.
Officials view Binance’s violations as deliberate. They believe the company allowed illicit transactions, failed to report suspicious activity, and knowingly served U.S. users despite stating otherwise. Regulators imposed the monitorship to prevent further damage to the financial system.
Reducing or eliminating this oversight could set a precedent that weakens U.S. enforcement. That risk explains the hesitation within the Treasury to approve Binance’s request. The department wants to see long-term compliance before considering a change.
Binance’s U.S. Comeback Strategy
Binance wants to rebuild its U.S. footprint. The company lost significant market share following last year’s crackdown. Binance.US, the American arm, struggled with low trading volumes and regulatory pressure. Several executives resigned, and partnerships with U.S. banks and custodians fell apart.
Under Richard Teng, Binance has begun to reset its image. The exchange has ramped up compliance hiring, formed internal audit committees, and opened its books to regulators. Teng believes these changes justify the removal of the monitorship.
Listing World Liberty Financial’s stablecoin also forms part of this comeback. A new U.S.-centric token could draw conservative and nationalist investors. Binance believes this base could give the company a competitive advantage over other global exchanges.
Still, many in the industry question the wisdom of tying business recovery to political ventures. Cryptocurrency thrives on decentralization and trust. Aligning with a polarizing figure like Trump could erode Binance’s credibility, especially in global markets like Europe and Asia.
Industry Reactions
Reactions across the crypto community remain mixed.
Some believe Binance deserves a chance to move forward. They argue the company paid its fine, admitted guilt, and made real changes. For them, regulatory forgiveness fosters innovation and prevents talent from fleeing the U.S.
Others feel Binance has not done enough. They point to its previous evasions, secret dealings, and Zhao’s attempts at leniency as red flags. These critics warn that easing oversight would undermine years of progress in crypto regulation.
The potential tie-up with Trump’s venture also raises eyebrows. Supporters see it as smart business, while detractors fear it drags crypto into partisan conflict.
What Comes Next?
Binance’s future depends on how the Treasury responds. Officials could deny the request, keeping the monitorship intact. They might also agree to modify its scope after conducting a thorough review.
The potential stablecoin listing with World Liberty Financial remains speculative. If Binance proceeds, the move could trigger both political and regulatory ripples.
For now, Binance continues its balancing act—rebuilding trust, defending its reputation, and pursuing growth in a deeply skeptical regulatory environment.
One thing remains clear: Binance’s leadership wants a clean slate. Whether Washington grants it remains uncertain. The world’s largest crypto exchange now stands at a crossroads between compliance, politics, and survival.
