Binance CEO Predicts U.S. Crypto Legislation Under Trump Will Influence Global Regulators
In a recent discussion at CONVERGE LIVE in Singapore, Binance CEO Richard Teng expressed optimism about the potential impact of U.S. President Donald Trump’s approach to cryptocurrency on global regulation. Teng stated that he anticipates Trump’s "pro-crypto" legislation could prompt regulators worldwide to adopt similar stances toward digital assets.
Shift in Regulatory Landscape
During the conversation with CNBC’s Arjun Kharpal, Teng highlighted a marked shift from a period characterized by regulatory uncertainty and perceived hostility toward the crypto industry, particularly under the previous administration of Joe Biden, to a more supportive environment. "We have moved from a period where there’s big regulatory uncertainty… to one where the largest economy in the world said ‘we want to embrace crypto,’" Teng remarked.
Teng inferred that the current administration’s more favorable regulatory stance is preferred by most within the crypto industry. “If you ask anybody in the crypto industry, people prefer the current administration compared to the last one,” he noted. His sentiments were echoed by Chao Deng, CEO of crypto fund manager HashKey Capital, who observed that Trump’s leadership is fostering significant momentum for both institutional and retail adoption of crypto assets.
Introduction of a Strategic Crypto Reserve
Teng’s comments coincide with Trump’s recent actions to formalize a strategic reserve of cryptocurrencies for the United States. This initiative will include digital assets confiscated through criminal and civil forfeiture proceedings. Announcing the plan on Truth Social, Trump specified that, besides Bitcoin, the reserve would comprise ether, XRP, Solana’s SOL token, and Cardano’s ADA coin.
Describing the U.S. crypto reserve as a "landmark" issue, Teng remarked, “The messaging is that the largest government… the biggest capital market in the world is now holding Bitcoin as part of the reserve." He believes that this could incentivize other governments to consider integrating cryptocurrencies into their financial frameworks.
Market Reactions and Future Outlook
Despite the initial excitement surrounding Trump’s strategic reserve announcement, Bitcoin prices have experienced a downturn. Investors have responded with caution, influenced by concerns regarding broader economic implications, notably Trump’s tariff plans. Teng characterized the recent decline in crypto markets as a "tactical retreat," asserting that the sector, like any other, is subject to macroeconomic factors.
Nonetheless, he conveyed a sense of optimism about the long-term prospects for cryptocurrencies, citing Washington’s renewed willingness to embrace digital assets as a positive driver for future growth. He noted that Trump has proactively nominated several crypto-friendly officials, including venture capitalist David Sacks as the White House’s artificial intelligence and crypto czar.
Ending ‘Operation Choke Point 2.0’
In addition to the proposed strategic reserve, Teng discussed the previous administration’s regulatory approach, which he described as “Operation Choke Point 2.0.” This term refers to an alleged initiative aimed at pressuring banks to withdraw support from cryptocurrency services during Biden’s presidency. Although CNBC could not independently verify this claim, Teng asserted that such pressure created significant barriers to the industry’s growth by enforcing regulation through enforcement actions rather than clear guidelines.
Echoing his views, HashKey Capital’s Deng emphasized the importance of restoring banking services to crypto firms within the U.S. “They encourage and they allow banks to be involved with crypto. This is a very huge step for the crypto and Web3 industry,” he stated, affirming that banks may now feel more secure in their relationships with crypto-related clients.
As the landscape continues to evolve, the cryptocurrency sector remains vigilant, hopeful that regulatory support will pave the way for broader acceptance and integration of digital assets across financial markets.
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