CZ Considering Reducing Holdings! Binance's Return to the US Strategy Revealed, Potential Collaboration with Trump-Related Companies

Binance co-founder CZ’s majority stake has become the biggest “obstacle” for the company’s return to the US market. Binance is considering reducing CZ’s holdings to break through regulatory difficulties. At the same time, Binance is actively seeking partnerships with top US institutions, with asset management giant BlackRock and the DeFi platform World Liberty Financial (WLFI), associated with President Trump, both on potential collaboration lists.

Why CZ’s Equity Stake Has Become the Biggest Barrier to US Strategy

(Source: CoinGecko)

CZ’s ownership stake in Binance is a sensitive issue in the eyes of US regulators. In November 2023, CZ pleaded guilty to violating the Bank Secrecy Act, agreeing to pay $4.3 billion in settlement and resign as Binance CEO. Although Trump pardoned him in October, CZ’s control still poses political and regulatory pressures as Binance seeks expansion in the US.

Sources reveal that discussions around CZ reducing his stake remain “uncertain,” with no specific plans announced yet. However, the very discussion indicates Binance’s emphasis on the US market. According to the Chainalysis “2025 Global Cryptocurrency Adoption Index,” the US ranks second in global crypto adoption rates, and entering the US market would bring significant liquidity and user base to Binance.

Binance ranks first among centralized crypto exchanges by trading volume, but its absence from the US market has been a persistent strategic pain point. In June 2019, Binance announced it would cease serving US customers and established an independent entity operated by BAM Trading Services. Binance US does not offer crypto derivatives and cannot access liquidity from Binance’s global exchange, operating as a fully independent platform.

However, this “firewall” has not completely shielded Binance from US regulatory scrutiny. In 2023, the US Securities and Exchange Commission (SEC) accused Binance Holdings Ltd. of operating Binance.com and BAM Trading Services simultaneously, questioning their independence. This indictment further highlights how CZ’s ownership structure constrains Binance US’s strategic development.

Three Major Strategic Options for Binance’s Return to the US

1. BlackRock Partnership Model

· Leverage the compliance expertise and political influence of the world’s largest asset manager

· Potentially develop through joint crypto product launches or strategic investments

· BlackRock has successfully launched a Bitcoin spot ETF and has deep understanding of the crypto market

2. World Liberty Financial Alliance

· Establish cooperation with the DeFi platform associated with the Trump family

· Use the Trump administration’s friendly policies toward crypto to gain political support

· Possibly provide Binance with smoother regulatory communication channels

3. Equity Structure Adjustment Plan

· CZ reduces his stake to at least a minority shareholder position, introducing US investors or institutional shareholders

· Establish a corporate governance structure more aligned with US regulatory expectations

· Maintain CZ’s influence at the strategic level but reduce direct control

These strategies are not mutually exclusive; Binance may adopt a combined approach to advance multiple directions simultaneously. The key is how to maintain Binance’s brand and technological advantages while satisfying US regulators’ requirements for ownership transparency and compliance.

Trump’s Pardons Change the Game

Trump’s October pardon of CZ became a turning point for Binance’s return to the US. After receiving the pardon, CZ immediately stated: “We will do everything possible to help the US become the cryptocurrency capital and promote Web3 development worldwide.” This statement clearly signals Binance’s hope to re-enter the US market.

Trump’s friendly stance toward the crypto industry contrasts sharply with the previous Biden administration. Trump signed an executive order establishing a national Bitcoin reserve, appointed crypto-friendly officials as SEC chairs, and rescinded multiple regulatory cases against crypto companies. This policy environment has created an unprecedented window of opportunity for Binance’s return to the US.

However, Trump’s pardon also sparked political controversy. Democratic lawmakers such as Senator Elizabeth Warren of Massachusetts and Representative Maxine Waters of California strongly oppose it. Waters called the pardon a “money-for-favors deal,” accusing Trump of providing political benefits to the crypto industry to “enrich himself.” Warren directly labeled the pardon as “corruption.”

These opposition voices reveal the political risks Binance faces in returning to the US. If Democrats win future midterm or presidential elections, the regulatory environment could shift again. Therefore, Binance needs to quickly complete strategic arrangements during Trump’s term to establish an irreversible market position.

Time Window and Implementation Challenges

Although discussions are still in early stages, Binance faces urgent time pressure. Trump’s second term is only four years, and crypto regulation policies could change with political winds. Binance must complete complex processes such as equity adjustments, partnership negotiations, and regulatory approvals within this window.

CZ’s specific methods for reducing his stake are also uncertain. Will existing investors increase their holdings to dilute CZ’s shares, or will CZ sell directly to strategic investors? After reducing his stake, will CZ retain veto rights over major decisions? These details will determine whether Binance can maintain the founder’s influence while meeting US regulatory requirements.