Binance CEO Richard Teng stated that President Donald Trump’s pro-crypto policies are prompting global regulators to reconsider their approaches. Speaking at Converge Live in Singapore, Teng highlighted the shift from the Biden administration’s crackdown on cryptocurrencies to a government that is actively supporting the industry.
Teng remarked, “We have moved from a significant regulatory uncertainty, characterized in many ways by a hostile regulatory stance towards the industry, to the world’s largest economy saying, ‘We want to embrace cryptocurrencies.’
Under President Biden’s term, regulators have imposed severe impacts on crypto exchanges and companies under the pretext of fraud and money laundering issues. Teng made it clear that the industry is breathing easier due to this transformation. “If you ask anyone in the cryptocurrency industry, people prefer the current administration over the last one.”
Trump Orders the Creation of U.S. Crypto Safe Zones
Earlier this month, Trump reversed his pro-crypto stance and issued an executive order to create strategic crypto safe zones in the U.S. The plan involves utilizing digital assets seized through criminal and civil forfeiture to establish reserves.
Trump announced his decision regarding Truth Social, confirming that the reserve will include Bitcoin, Ethereum, Ripple (XRP), Solana (SOL), and Cardano (ADA).
There, Teng said, “The messaging from the largest government… the world’s largest capital market is now taking Bitcoin as part of the safe zone, which will lead many other governments to think, sit down, and say should we start allocating to cryptocurrencies and Bitcoin?”
The crypto market reacted immediately. Following the announcement, Bitcoin’s price dropped as investors were overwhelmed by the details of the reserves.
Concerns over Trump’s new tariff policies also weakened broader market sentiment, with some believing it could impact risk assets like cryptocurrencies.
Teng downplayed this dip, calling it a short-term market reaction, and added that Washington’s stance on digital assets and Trump’s appointments of crypto-friendly legislators will be a strong long-term driver for the industry.
Since returning to office, Trump has prioritized crypto regulations, appointing venture capitalist David Sacks as the new White House AI and crypto czar.
Richard Teng Sees the End of “Choke Point 2.0” for Cryptocurrency
Teng stated that the regulatory hostility under the Biden administration included what he referred to as the “Choke Point 2.0” initiative, a coordinated effort aimed at cutting cryptocurrency companies off from banking services.
He described it as an attempt to make it nearly impossible for cryptocurrency to be integrated into the financial system by severing companies’ relationships with traditional banks.
Although CNBC could not verify the existence of such operations, Teng insisted that the industry has suffered greatly from regulatory pressures.
Chao Deng, CEO of Hashkey Capital, supported Teng’s claims, asserting that access to banking services is one of Trump’s biggest victories in the election.
“They encourage and allow banks to participate in cryptocurrencies. This is a very important step for the crypto and Web3 industry,” Deng said, explaining that banks now feel comfortable working with crypto clients again.
This comes as the crypto market grapples with Trump’s economic policies, but the Binance BNB token surged by 8% after reports emerged that the Trump family is negotiating to secure financial equity in Binance.us. According to the Wall Street Journal, Binance had reached out to Trump’s allies last year to establish a potential partnership that could help Binance regain a foothold in the U.S.
Reportedly, real estate investor and longtime Trump partner Steve Witkoff is leading discussions with the Trump family.
Meanwhile, the WSJ claimed that Binance founder Changpeng Zhao (CZ) is seeking a presidential pardon after serving four months for violating anti-money laundering laws.
CZ clarified in a post on X that the journal’s facts are incorrect. “The facts: I did not discuss any dealings with the U.S…. well, anyone,” he stated. “No felon would mind a pardon, especially being the only person in U.S. history to go to prison for a single BSA charge.” However, CZ believes that the WSJ article was fueled by attacks on Trump and cryptocurrencies, with the remnants of the previous administration’s “crypto wars” still at play. “It’s nice to see that even the WSJ thinks I should be pardoned,” he joked.
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