Robinhood’s latest expansion into meme coin trading and former Binance CEO Changpeng "CZ" Zhao’s response to pardon allegations shed light on the shifting landscape of cryptocurrency regulation and market competition. As Robinhood adds Pengu (PENGU), Pnut (PNUT), and Popcat (POPCAT) to its platform to meet growing retail demand, CZ has pushed back against claims that he sought a presidential pardon from Donald Trump.
CZ Denies Seeking Trump Pardon Amidst Wall Street Journal Allegations
Changpeng "CZ" Zhao, the former CEO of Binance, has vehemently denied allegations that he had seeked a presidential pardon from US President Donald Trump. The claims, initially published in a March 13 report by the Wall Street Journal (WSJ), suggested that CZ was exploring avenues for legal relief that could allow him to reassume an operational role at Binance or otherwise regain influence in the crypto industry.
Zhao took to X shortly after the report's release to refute the claims, stating that he never discussed a business arrangement between the Trump family and Binance.US. He further denied that he had ever pursued a pardon from Trump, calling the report part of a broader political attack against the president and the cryptocurrency sector.
“No felon would mind a pardon, especially being the only one in US history who was ever sentenced to prison for a single BSA [Bank Secrecy Act] charge,” Zhao wrote. “Feels like the article is motivated as an attack on the President and crypto, and the residual forces of the ‘war on crypto’ from the last administration are still at work.”
Zhao’s legal troubles stem from a landmark case in which Binance reached a $4.3 billion settlement with US authorities in November 2023. As part of the agreement, Zhao pleaded guilty to violating the Bank Secrecy Act (BSA) for failing to implement an effective anti-money laundering program at Binance. He subsequently stepped down as CEO and was sentenced to four months in prison. The plea deal also reportedly included a stipulation barring him from any operational or managerial role at Binance indefinitely.
Despite serving his sentence, the implications of Zhao’s conviction continue to be a focal point of scrutiny, particularly as the regulatory landscape for crypto shifts under the new administration.
While a presidential pardon from Trump would not erase Zhao’s conviction, it could potentially lift some of the legal restrictions imposed on him. According to the US Department of Justice, a pardon "removes legal disabilities imposed because of the conviction," meaning it could open the door for Zhao to resume certain professional activities within the cryptocurrency space.
However, legal experts argue that a pardon’s impact would likely be limited. The $4.3 billion settlement agreement with US authorities—including the permanent injunction against Zhao’s involvement in Binance—may still hold, regardless of whether Trump grants him clemency. Additionally, such a move would likely face intense scrutiny from lawmakers and regulators who have sought to hold Binance accountable for its alleged past regulatory lapses.
The Political and Regulatory Landscape: A Crypto Shift Under Trump?
The WSJ report also speculated that Trump’s administration has been taking a markedly different approach to cryptocurrency regulation. Since Trump took office in January, the Securities and Exchange Commission (SEC) has reportedly paused multiple enforcement actions against major crypto firms, including some entities linked to those who supported his campaign or inauguration fund.
One of the most notable examples is the SEC’s decision to file for a 60-day pause in its legal battle with Binance, a move that followed the departure of former SEC Chair Gary Gensler. The shift in approach has sparked speculation that Trump’s administration may be looking to ease regulatory pressures on the crypto industry.
Additionally, reports suggest that the SEC may soon conclude its civil case against Ripple Labs, a long-running lawsuit that has been a defining legal battle for the crypto industry. If the SEC opts to drop its case against Ripple, it could set a precedent for further regulatory softening under Trump.
While Zhao remains one of the most influential figures in the crypto world, his ability to directly participate in Binance’s operations or any major crypto firm remains uncertain. Even if Trump were to grant him a pardon, Zhao would still face scrutiny from regulators and financial institutions wary of Binance’s history of compliance issues.
For Binance itself, the legal battles with US regulators remain a significant overhang. While the company has taken steps to improve its regulatory standing—including leadership changes and compliance overhauls—its future in the US market remains uncertain.
Meanwhile, Zhao has hinted at a desire to remain involved in the industry in some capacity, even if not directly linked to Binance. His recent social media activity suggests that he remains deeply engaged with the broader crypto ecosystem and may seek alternative ways to contribute.
Robinhood Expands Crypto Offerings with PENGU, PNUT, and POPCAT Listings Amid Rising Meme Coin Demand
In other news, Robinhood has officially expanded its cryptocurrency offerings by listing three new meme coins—Pengu (PENGU), Pnut (PNUT), and Popcat (POPCAT)—as part of its aggressive push into the digital asset space.
The latest listings signal a strategic shift by Robinhood, which is capitalizing on the growing retail interest in speculative crypto assets following US President Trump's election victory. As regulatory winds shift in favor of the crypto industry, exchanges are accelerating the addition of new digital assets, with meme coins emerging as a key battleground.
Meme coins—initially dismissed as mere internet jokes—have evolved into a legitimate market force, attracting billions in trading volume. Dogecoin (DOGE), the sector's largest asset by market capitalization, has already been available on Robinhood, but the platform's latest expansion into lesser-known meme coins reflects a broader strategy to meet retail demand.
The decision to list PENGU, PNUT, and POPCAT follows a February statement from Robinhood Crypto, which revealed a significant uptick in customer interest in meme coin trading.
This customer-driven approach appears to be paying off, as Robinhood’s crypto revenues soared 700% year-over-year in early 2024. Meme coins, often fueled by online communities and social media hype, have become a major driver of speculative trading activity, particularly among retail investors looking for short-term gains.
Robinhood’s Crypto Expansion and Competitive Strategy
While Robinhood is traditionally known as a stock trading platform, the company has significantly ramped up its crypto-focused services over the past year. In January, it launched crypto futures trading, providing users with more advanced trading options beyond spot buying and selling.
The brokerage’s latest meme coin listings indicate a direct challenge to established crypto exchanges like Coinbase and Binance.US, both of which have rapidly expanded their token listings since Trump’s election win. As crypto adoption grows, the competition among platforms to capture retail traders is intensifying, with meme coins acting as an entry point for many new investors.
Robinhood’s expansion into crypto has not only been strategic but also lucrative. The platform reported record-breaking trading volumes across equities, options, and cryptocurrencies in Q4 2024, with crypto trading seeing the highest percentage growth.
A crucial factor in Robinhood’s accelerated push into crypto is the changing regulatory landscape in the US.
Under former SEC Chair Gensler, the agency took an aggressive stance against the crypto industry, arguing that most digital assets should be classified as securities and thus subject to strict regulation. However, following Trump’s election and the appointment of crypto-friendly regulators, the SEC’s stance on digital assets has softened considerably.
In February 2024, the SEC made a landmark declaration, stating that most meme coins do not qualify as securities and, therefore, do not fall under its jurisdiction. This announcement was a stark reversal from the Biden administration’s regulatory approach, which had imposed heavy enforcement actions on crypto exchanges and platforms.
Additionally, the SEC dropped an enforcement action against Robinhood in February, which had alleged that the company’s crypto trading platform violated securities laws. This decision further signaled a regulatory shift favoring innovation and crypto adoption, providing platforms like Robinhood with greater flexibility to list new assets without facing immediate legal scrutiny.
With Robinhood continuing to expand its crypto services and token offerings, the platform is positioning itself as a major player in the evolving digital asset market.
Meme coins, once viewed as a niche segment, are now attracting institutional attention and massive retail trading volume, with some tokens even outperforming traditional cryptocurrencies in certain market cycles. With Trump’s administration signaling pro-crypto policies, the industry could see further regulatory easing, making it easier for platforms to list new assets without fear of legal action.
