Coinbase Denies Binance–Trump Stablecoin Allegations
Coinbase denies being the anonymous source for a recent Bloomberg report linking Binance’s smart contract coding to the USD1 stablecoin tied to Donald Trump’s World Liberty Financial and a presidential pardon bid for former Binance CEO Changpeng Zhao. The allegations were first raised by crypto commentator Matt Wallace on X, suggesting Coinbase aimed to curb Binance’s US re-entry over market share concerns.
Coinbase denies cooperating with Bloomberg, with CLO Paul Grewal calling the story “pure misinformation.” Blockchain advisor Anndy Lian also criticized Bloomberg’s reliance on unnamed sources. Changpeng Zhao dismissed the report as a “hit piece,” retweeted Wallace’s post, and is weighing legal action. The episode has sparked debate over potential market manipulation and may draw regulatory scrutiny, though it has not yet moved major crypto prices.
Neutral
The news centers on allegations and denials rather than concrete regulatory or operational changes, focusing on reputational disputes between exchanges. Since Coinbase’s and Binance’s core trading functions remain unaffected and the USD1 stablecoin is designed to maintain its peg, traders are unlikely to alter positions based on these claims alone. As a result, the market impact is expected to be neutral in both the short and long term.