Federal Reserve withdraws crypto guidance for banks  

Binance founder and convicted felon Changpeng Zhao says that he applied for a pardon from US President Donald Trump shortly after denying reports that he was seeking one.Zhao, also known as CZ, said on a Farokh Radio podcast episode aired May 6 that he “wouldn’t mind” a pardon and that his lawyers have already filed the paperwork on his behalf“I got lawyers applying,” Zhao said, adding that he submitted the request after Bloomberg and The Wall Street Journal reported in March that he was seeking a pardon from Trump amid discussions of a business deal between the Trump family and Binance.US.Zhao denied the reports at the time, but said on the podcast that he thought “if they’re writing this article, I may as well just officially apply.”He added that Trump’s pardon of three BitMEX founders, including Arthur Hayes, also motivated him to submit an application.Zhao said the application was submitted about two weeks ago.Changpeng Zhao (right) speaking with Farokh Sarmad (left). Source: Farokh RadioZhao said at the time of the Bloomberg and Wall Street Journal reports that “no felon would mind a pardon,” and claimed he is the only person in US history to serve prison time for a Bank Secrecy Act charge.Zhao pleaded guilty to a money laundering charge in November 2023 as part of a deal Binance reached with US authorities, which saw it pay a $4.3 billion fine, to which Zhao contributed $50 million. He was also forced to step down as CEO.Zhao was later sentenced to four months in prison and was prohibited from working at Binance as part of his plea deal.Related: VanEck files for BNB ETF, first in USAccording to the US Department of Justice, a pardon would not erase Zhao’s money laundering conviction; however, it could potentially allow him to assume a management or operational role at Binance.US.Zhao has no plans to return as Binance CEOWhile Zhao remains a Binance shareholder, he said in November at Binance Blockchain Week that he has “no plans to return to the CEO position.” “I feel the team is doing well and doesn’t need me back,” Zhao said.Since leaving prison, Zhao has commenced advisory roles in Pakistan and Kyrgyzstan, assisting on matters related to crypto regulation and implementing blockchain solutions.Magazine: Bitcoiner Adam Back on Blockstream conspiracy theories and Satoshi question

Braden John Karony, the former CEO of crypto firm SafeMoon, made an out-of-court statement claiming innocence as his criminal trial began in New York.In a May 6 X post after court proceedings had likely ended for the day, Karony said he was innocent and “did not commit fraud” in response to media coverage of his trial. The former CEO, as well as SafeMoon creator Kyle Nagy and former chief technology officer Thomas Smith, were charged in 2023 for having allegedly “diverted and misappropriated millions of dollars’ worth” of the platform’s SFM token.According to reporting from the US District Court for the Eastern District of New York (EDNY) on May 6, Karony implied that Nagy, who reportedly fled to Russia after authorities filed charges, was responsible for some of the alleged fraud at SafeMoon. On the first day of the trial, after jury selection, Smith reportedly appeared as a witness for the prosecution with a SafeMoon victim.The trial, expected to run until May 26, has arguably received less media attention and scrutiny than other crypto cases, such as the 2023 trial of former FTX CEO Sam Bankman-Fried and the sentencing of former Binance CEO Changpeng Zhao. Karony pleaded not guilty to charges of securities fraud conspiracy, wire fraud conspiracy and money laundering conspiracy, and has been free on a $3 million bond since February 2024.Related: What do crypto users want to happen to Alex Mashinsky?Many high-profile individuals from the crypto industry who faced criminal charges did not publicly comment on social media until the conclusion of their cases, likely on the advice of counsel. Such statements may be used at trial.Trump’s interim appointee moves in without Senate confirmationKarony’s case, first filed in November 2023, came as Donald Trump appointee Joseph Nocella assumed the role of interim US Attorney for the court district. EDNY’s courts have previously handled cases involving allegations of crypto fraud, but it’s unclear whether politics will play a role moving forward, given Trump’s alignment with the crypto industry.In the neighboring US District Court for the Southern District of New York, Alex Mashinsky is scheduled to be sentenced on May 8. The former Celsius CEO pleaded guilty to two felony charges in December 2024. Prosecutors have asked a judge to impose a 20-year sentence.Magazine: Bitcoiner Adam Back on Blockstream conspiracy theories and Satoshi question

Speaking at a hearing, US Treasury Secretary Scott Bessent toed the party line in suggesting support for two crypto-related bills moving through Congress.Bessent addressed lawmakers at a May 7 hearing of the House Financial Services Committee, saying that the United States should be the “premier destination for digital assets” in response to a question about American dominance over China in crypto-related innovation. The Treasury Secretary added that “good market structure” and “stablecoin legislation” could help ensure this outcome.US Treasury Secretary speaking at a May 7 hearing. Source: Scott BessentBessent’s remarks echoed those of other Republican lawmakers and President Donald Trump, who initially claimed he wanted to make the US the “crypto capital of the world” during his 2024 campaign. The Treasury Secretary was likely referring to the draft of a digital asset market structure bill released by House Republicans on May 6 and the GENIUS bill to regulate stablecoins, expected to be taken up for a vote in the Senate on May 8.The Treasury Secretary, a Trump nominee, has stood by the president for significant announcements in crypto-aligned policy, including an executive order to establish a sovereign wealth fund and as a member of a working group to explore federal regulations for stablecoins and a national crypto stockpile. He suggested during a confirmation hearing that he would oppose the creation of any US-issued central bank digital currency while in office.Related: Bitcoin ‘Realized Cap’ hits $890B as BTC traders focus on recapturing $100KDemocrats push back on crypto bills amid memecoin dinner controversyEven before announcing that he intended to hold an exclusive dinner and VIP tour for some of his top memecoin holders, Trump faced scrutiny from many lawmakers over allegations of conflicts of interest surrounding his crypto ventures. However, the dinner announcement seemed to galvanize some Democrats against any crypto-related legislation.Representative Maxine Waters, ranking member of the House Financial Services Committee, led a walkout of a hearing addressing the Republican-drafted crypto market structure bill on May 6, citing the need to explore “Trump’s crypto corruption.” A group of nine Democrats in the Senate likewise said they will not support the GENIUS stablecoin bill in its current form, suggesting stronger Anti-Money Laundering, foreign issuer, and national security safeguards. It’s unclear at the time of publication whether Republicans, who control both chambers, will still have the votes to pass either bill.Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions