It’s a classic move: deny, deny, deny. But when it comes to Donald Trump's recent claim of not knowing Changpeng Zhao (aka "CZ"), the crypto mogul he pardoned, the numbers just don't add up. The former president's denial, delivered on 60 Minutes, raises more questions than it answers. Is it genuine amnesia, or a calculated attempt to distance himself from a potentially tainted asset?
Trump's assertion of ignorance comes despite CZ's guilty plea for enabling money laundering in 2023—a pretty significant detail to overlook. More to the point, the ties between Trump's orbit and the crypto world run deeper than a casual acquaintance. CZ's companies have partnered with firms linked to Trump, including Dominari Holdings, which has Trump's sons on its advisory board and is based in Trump Tower. The White House Press Secretary even framed Zhao's prosecution as a "war on cryptocurrency" by the Biden administration. That's a coordinated narrative, not a random act of clemency.
Then there's the pattern. The Trump administration previously halted a fraud case against crypto entrepreneur Justin Sun after investments in the Trump family's crypto firm, World Liberty Financial. He also pardoned founders of the crypto exchange BitMEX, who faced money laundering charges, and Ross Ulbricht, of Silk Road infamy. Is this just coincidence? Unlikely. It looks more like a deliberate strategy to cultivate the crypto world and keep it onside.
And this is the part of the report that I find genuinely puzzling. Why publicly claim ignorance when the connections are so readily apparent? The pardon itself is a matter of public record. The partnerships are documented. Even a cursory Google search reveals the links. So, is Trump betting that his base won't bother to check the facts? Is he appealing to a specific segment of the crypto community that values loyalty above all else? What's the angle here?
While Trump plays coy, the crypto landscape continues to evolve, and quickly. The SEC's potential approval of crypto ETFs is a major development. The delay caused by the government shutdown shifted the timeline, but now November is shaping up to be a crucial month. Issuers are exploiting a loophole – filing updated S-1 registration statements with "no delaying amendment" language – to bypass the SEC's active sign-off. Canary Capital, Bitwise, and Grayscale have already successfully launched ETFs using this method.
Fidelity has filed an updated S-1 for its spot Solana ETF, and Canary Capital for its XRP ETF. If the SEC remains passive, we could see an XRP fund as early as November 13. However, Bloomberg Intelligence ETF analyst James Seyffart notes that funds lacking SEC feedback on their S-1s might face delays. "I think it's possible we see a bunch of the funds launch next month," Seyffart said. "But there are some that are simply unlikely to launch without the government reopening."
The success of these ETFs hinges on regulatory inertia, but the underlying demand is undeniable. Investors are clearly eager to access crypto through traditional investment vehicles. The question is whether the SEC will step in to regulate the process more actively, or continue to allow these ETFs to launch by default.
Trump's denial is a high-risk, high-reward gamble. He's either betting on his supporters' unwavering loyalty, or he's signaling something else entirely. Either way, the numbers suggest a pattern of behavior that's hard to ignore.
