Weekly Recap: Trump Pardons CZ, Polymarket Chases $15B Valuation

Former President Trump pardoned Binance CEO Chengping Zhao, signaling a major policy shift towards digital assets under a potential new Trump administration, while prediction markets like Polymarket eye multi-billion dollar valuations amid regulatory challenges, and crypto executives lobby for market structure legislation.

• Trump's pardon of CZ signals a major pro-crypto policy shift and potential return for Binance to the US market.

• Prediction market firms Polymarket and Kalshi are seeing massive valuations and trading volumes despite regulatory hurdles.

• Crypto industry leaders are actively lobbying US senators to pass bipartisan market structure legislation for digital assets.

Donald Trump granted a full pardon to former Binance CEO Chengping Zhao, framing it as an end to the 'Biden administration's war on cryptocurrency' and potentially paving the way for Binance's return to the US market. Meanwhile, prediction market leaders Polymarket and Kalshi are seeing massive investor enthusiasm, with Polymarket in talks for a $15 billion valuation, despite looming regulatory challenges from the CFTC and state gaming regulators. Top crypto executives also met with US senators to push for long-delayed market structure legislation aimed at defining how digital assets are classified and regulated.

Trump Pardons CZ

• 00:00:06 President Donald Trump granted a full pardon to Chengping CZ Zhao, the former CEO of Binance, following months of lobbying efforts. This decision is presented as a major policy shift towards digital assets under the Trump administration, with White House press secretary Caroline Levitt stating it ends the 'Biden administration's war on cryptocurrency.' Zhao, who served four months for anti-money laundering violations, thanked Trump and expressed a desire to help make America the 'capital of crypto,' potentially clearing Binance's path back to the US market despite ongoing regulatory monitorships.

Prediction Market Boom

• 00:00:58 Prediction market leaders Polymarket and Kalshi are experiencing a significant surge in investor interest, with Polymarket reportedly in early talks to raise funds at a valuation between $12 billion and $15 billion, a substantial increase from its prior $1 billion valuation. Both platforms have seen record activity, with combined weekly trading volumes exceeding $2 billion, and have secured major commercial deals, including partnerships with the National Hockey League. However, regulatory challenges persist, with the CFTC allowing limited market expansion while state gaming regulators raise concerns about market manipulation and insider trading.

Crypto Legislation Push

• 00:02:43 Top crypto executives, including Coinbase CEO Brian Armstrong and Chainlink's Sergey Nazarov, met with US senators from both parties to advance long-delayed crypto market structure legislation. Discussions with Senate Democrats focused on reconciling policy gaps in areas like decentralized finance and illicit finance, with sufficient bipartisan support noted to keep the bill alive. A subsequent meeting with Republican lawmakers reaffirmed GOP backing for the bill, which aims to define the classification and regulation of digital assets, with industry leaders like Armstrong emphasizing continued pressure to move the legislation forward.

Meteora & Meme Coin Scams

• 00:03:58 An amended class action lawsuit alleges that Benjamin Chao, co-founder of Solana-based Dap Meteora, orchestrated a network of fraudulent meme coin launches, including the Libra and Melania tokens. The lawsuit claims Chao's team created at least 15 tokens through a coordinated scheme, leveraging public figures like Argentine President Javier Malé and First Lady Melania Trump for 'window dressing' to legitimize what plaintiffs call a 'coordinated liquidity trap.' Both meme coins surged before rapidly collapsing, causing millions in investor losses, though Meteora had its own token generation event and denied profit from the projects.