Trump's 2025 Pardon Wave: A Turning Point for the Cryptocurrency Industry

Policy Reversal Reshapes Federal Regulatory Landscape

The year 2025 marks a fundamental shift in the U.S. federal government's attitude toward the cryptocurrency industry. Donald Trump, through a series of exercises of presidential pardon powers, rewrote the legal and political status of digital assets in the United States. These decisions not only affected the fate of specific individuals but also symbolized Washington's adjustment of enforcement directions for the entire industry.

Trump openly stated on social media platform Truth Social: “Political factors drove these cases,” dismissing the previous administration's approach as “absurd.” This stance reflects a deeper strategic shift—pushing cryptocurrencies from fringe issues to the center of U.S. political and economic policy.

Silk Road Founder’s Release Sparks Controversy

In January 2025, Trump pardoned Ross Ulbricht, the founder of the Silk Road dark web marketplace, who had served over ten years. Ulbricht was originally sentenced to two life imprisonments on charges including operating an illegal dark web trading platform, money laundering, and drug crimes related to Bitcoin transactions.

This pardon fulfilled Trump’s long-standing promise to libertarian voters and Bitcoin advocates, who have long promoted the “Free Ross” movement. Ulbricht himself stated at the Bitcoin 2025 conference that, just months ago, he was still in prison, and now he is free, thanks to the support of attendees and Trump’s fulfillment of his promise.

Supporters see this as a rightful redress for a figure connected to the history of the cryptocurrency movement. However, former prosecutors and legal commentators worry that this decision could undermine a landmark cybercrime conviction case. U.S. Congressman Thomas Massie publicly praised the decision on social media, emphasizing that Trump kept his promise.

Executive of Derivatives Trading Platform Pardoned

Three months later, in March, Trump announced the pardon of Arthur Hayes and Benjamin Delo, founders of a well-known derivatives exchange, as well as early employees Samuel Reed and Greg Dwyer. The four pleaded guilty in 2022 to violations of the Bank Secrecy Act, specifically for failing to implement necessary anti-money laundering compliance controls.

At the time, the platform attempted to pivot and characterized the case as “history.” The defendants received probation and fines, but the pardon erased their criminal records. Hayes quickly thanked Trump on social media after the announcement.

This move clearly signaled a break from the previous administration’s approach, which had attempted to enforce strict compliance standards on crypto trading platforms serving U.S. customers.

Pardons of Major Exchange Founders Spark Political Storm

If the first two pardons drew criticism, then the October 2025 pardon of Changpeng Zhao (commonly known as CZ), founder of a major global crypto exchange, became the most controversial decision. Zhao admitted to violating anti-money laundering regulations in November 2023 and served a four-month prison sentence in 2024.

The White House framed this pardon as the end of the “Biden administration’s crackdown on the cryptocurrency industry.” Senator Chris Murphy accused the exchange of attempting to influence government crypto policies, citing a stablecoin linked to Trump and a $2 billion Middle Eastern transaction involving that token.

Although these allegations remain unproven, they sparked an in-depth examination of potential links between government and Trump family business interests. In media interviews, Trump denied any personal connection to Zhao, describing him as a “respected figure” and a “victim of law enforcement actions by the previous administration.” When asked about his children’s business dealings, Trump responded that “they run businesses but are not in government.”

Zhao expressed “deep gratitude” after the pardon but did not return to the exchange’s management.

The Intersection of Power and Suspicion

Supporters claim that the president has fulfilled his promise to relax federal regulatory pressure. Critics warn that these decisions blur the lines between politics and political loyalty. Senator Elizabeth Warren issued a statement highlighting this troubling pattern: first, someone pleads guilty to money laundering, then supports a politician’s crypto project and lobbies for a pardon, and finally receives the pardon. She warned Congress must close such loopholes in upcoming market structure legislation, or they will be responsible for this phenomenon.

This series of pardons collectively marks a fundamental repositioning of the federal stance on digital assets in 2025 and foreshadows a new round of conflicts in 2026 over how the government should regulate the crypto industry. From strict enforcement to policy tilt, these events demonstrate the increasing prominence of cryptocurrency within the U.S. power structure.