California Governor Gavin Newsom condemns Trump’s crypto pardons for CZ and Ross Ulbricht, labeling them as leniency to ‘criminal cronies’.
- Governor Newsom targets Trump’s pardons for crypto figures CZ and Ulbricht.
- Criticism focuses on federal leniency undermining state protections.
- Pardons viewed as favoring “criminal cronies,” affecting consumer protections.
California Governor Gavin Newsom sharply criticized former President Trump’s potential pardons of Binance’s Changpeng Zhao and Silk Road’s Ross Ulbricht, branding them as dangerous decisions for California’s crypto consumer protections.
Newsom’s statements alarm regulators and investors, potentially impacting Bitcoin and Binance Coin markets as the state reinforces scrutiny of digital asset organizations in response.
Trump Pardons Crypto Giants Amid Regulatory Criticism
California Governor Gavin Newsom has openly criticized President-elect Donald Trump for pardoning Binance founder Changpeng Zhao and Silk Road creator Ross Ulbricht. Newsom believes such pardons undermine California’s crypto regulations.
Changpeng Zhao faced legal issues in 2023 related to money laundering, resulting in significant Binance fines. Ross Ulbricht, serving a life sentence for various convictions, represents a controversial figure in crypto history.
Newsom’s Condemnation Sparks Market Reactions
Trump’s pardons have sparked heated reactions from political figures and industry leaders. Gavin Newsom’s condemnation is part of a broader resistance to federal policies perceived as reckless. Newsom stated, “Trump’s crypto pardons for CZ and Ulbricht are a gift to criminal cronies preying on everyday Californians. We won’t let federal recklessness undermine our state’s consumer protections against crypto scams and dark money schemes.”
Market reactions include minor spot volume changes for BTC and BNB, reflecting investor uncertainty. Crypto stakeholders highlight political, and regulatory implications of such federal decisions.
Comparing Pardons to Past Crypto Scandals
The event draws comparisons to the Bitfinex hack and FTX collapse, where regulatory actions led to significant market shifts. Newsom’s stance echoes past legal interventions targeting crypto figures.
Based on historical trends, increased scrutiny and political dispute over pardons could lead to tighter regulatory environments. Experts note that federal and state tensions may influence future crypto market dynamics.
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