Cryptocurrency giant Binance is reportedly deepening its ties with the Trump family

 Cryptocurrency giant Binance is reportedly deepening its ties with the Trump family as part of a bold strategy to re-enter the U.S. market and navigate regulatory hurdles.

Cryptocurrency behemoth Binance is reportedly deepening its ties with the Trump family as part of a broader strategy to re-enter the U.S. market and navigate regulatory hurdles, according to a new report by the Wall Street Journal.

According to sources familiar with the matter, executives at Binance have been engaging with U.S. Treasury Department officials in a series of recent meetings. During these discussions, they have focused on persuading the officials to scale back or remove the court-appointed monitor overseeing the exchange’s anti-money laundering (AML) compliance.

This move comes as part of Binance’s broader efforts to regain a foothold in the U.S. market after being slapped with a record 3.3 billion penalty in 2023 for enabling illicit financial activities. However, the company’s new strategy appears to include aligning itself with influential political figures, which could potentially help ease regulatory restrictions and bolster its future prospects.

Earlier this year, Binance was ordered to pay a record 1 billion penalty to settle charges from the Securities and Exchange Commission (SEC) for operating as an unregistered exchange and mishandling customer funds. Additionally, the Commodities Futures Trading Commission (CFTC) slapped the exchange with a 1.8 billion penalty for illegally offering derivatives products to U.S. traders.

Furthermore, U.S. authorities have been investigating Binance for its role in facilitating North Korean hackers’ attempts to steal cryptocurrency from a blockchain game.

In a bid to return to the U.S. market and avoid further penalties, Binance is now seeking to remove the court-appointed monitor, which has been closely examining the exchange’s internal controls and compliance procedures since April 2023.

However, officials at the Treasury Department have reportedly shown little interest in removing the monitor, considering the exchange’s past transgressions.

“There’s no indication that the Treasury Department is planning to stand down from its oversight of Binance,” a spokesperson for the department said.

The Trump family, through their crypto venture World Liberty Financial, is developing a USD1 stablecoin, which could be listed by cryptocurrency giant Binance, sources told The Block.

Members of the Trump family have joined forces with former Trump administration officials to launch a crypto startup that is now seeking to introduce a new dollar-pegged stablecoin, according to sources familiar with the matter.

The startup, known as World Liberty Financial, is focused on developing digital assets and has already secured approval from the U.S. Treasury Department to operate as a money transmitter.

Among the co-founders of World Liberty Financial are former President Donald Trump’s son, Donald Trump Jr., and former Trump administration officials, including Treasury Department sanctions adviser David Hedley.

The startup is also backed by private equity firm Kalix, which is co-founded by former White House economic adviser Gary Cohn, and former Goldman Sachs Group Inc president Harvey Schwartz.

World Liberty Financial’s main focus is on launching USD1, a new stablecoin that will be pegged to the U.S. dollar and available for trading on cryptocurrency exchanges.

“They’ve been trying to get USD1 listed on Binance,” one source said.

If successful, this partnership could bring USD1 into the global crypto spotlight, similar to the success experienced by established stablecoins like Tether (USDT).

For the Trump family, this deal presents a significant opportunity to tap into the booming digital currency market, where stablecoins are seeing exponential growth and generating billions of dollars in profits.

In 2022 alone, stablecoins generated around $1.4 billion in revenue, according to Token Terminal data.

Meanwhile, Binance stands to gain political protection, leveraging its association with high-profile figures to ease restrictions and secure a potential pardon for its convicted founder, Changpeng Zhao.

Despite making strides in courting political figures, Binance continues to grapple with regulatory oversight and scrutiny in the United States.

The company’s ongoing discussions with the U.S. Treasury reflect its desire to shed the heavy regulatory burden that continues to affect its operations. The court-appointed monitor, which was implemented after Binance’s significant penalties in 2023, has been a major point of contention for the exchange’s leadership.

The potential stablecoin listing could be a game-changer for Binance, allowing it to expand its services while navigating a complex regulatory environment. For the Trump family, it provides a chance to stake a claim in the evolving crypto ecosystem—an area of growing financial interest for political figures and tech entrepreneurs alike.

As Binance and the Trump family continue to explore potential deals, the broader implications for both crypto regulation and political influence in the industry are bound to unfold. Will this strategic partnership be the catalyst for Binance’s successful U.S. return, or will regulatory hurdles continue to complicate its plans?