Senator Warren’s Resolution Against Trump’s Pardon
In a significant move this week, Senator Elizabeth Warren intends to introduce a resolution in the Senate that denounces President Donald Trump’s recent pardon of Changpeng “CZ” Zhao, the founder of Binance. This effort, confirmed through a letter sent to fellow senators on Monday and reviewed by Decrypt, is supported not just by Warren, a prominent critic of the cryptocurrency sector, but also by Senator Adam Schiff, who has shown support for crypto initiatives and played a crucial role in the passage of the GENIUS Act, which focuses on stablecoins and was signed by Trump this summer.
Contention Among Lawmakers
The pardon has sparked notable contention within Congress, especially among Democratic lawmakers. Notably, in 2023, Zhao admitted guilt over breaches of U.S. anti-money laundering regulations, resulting from an investigation by the Treasury Department that revealed Binance’s failure to block crypto transactions linked to terrorist groups, including ISIS and Al Qaeda. As discussions continue regarding new legislation aimed at structuring the crypto market, concerns about national security have taken a prominent position in the dialogue among Senate Democrats.
Concerns Over Conflicts of Interest
Moreover, the pardon connects to broader apprehensions within the Democratic Party regarding potential conflicts of interest and the controversial self-enrichment of figures in the current administration. Earlier this year, Binance played a pivotal role in a significant transaction involving the Trump family’s crypto venture, World Liberty Financial, which raised $2 billion through a stablecoin investment in Binance supported by a UAE-based company. The Trump family, including the former president and his sons, have substantial financial interests in World Liberty, while Zhao retains ownership of a significant share of Binance, despite stepping back from company operations after facing legal troubles.
Warren and Schiff’s Joint Letter
In their joint letter to senators, Warren and Schiff emphasized:
“The President’s announcement last week that he was pardoning Zhao came after months of a closely knit business relationship between Zhao and the Trump family. It is imperative for Congress to intervene to prevent public officials, including the president and his family, from engaging in such visible corruption and influence-peddling.”
Market Reactions and Legislative Challenges
Furthermore, the letter pointed out that following the news of Zhao’s pardon, there was a notable spike in the value of World Liberty’s native token, WLFI, which saw an increase of over 15%. While there is considerable discontent, particularly among Democrats, regarding the pardon, the likelihood of the resolution passing in the Senate appears slim. Since Republicans currently hold the majority, Warren and Schiff aim to advance the resolution via unanimous consent, which means that even a single objection from a Republican senator could halt the process entirely.
