Trump explicitly refuses to pardon SBF, what does this mean for the cryptocurrency market

According to the latest news, Trump has stated to The New York Times that he has no intention of pardoning FTX founder Sam Bankman-Fried (SBF). This statement breaks some previous market expectations and clearly defines the Trump administration’s stance on cryptocurrency illegal activities. When some voices in the crypto industry hoped Trump might consider a pardon, this explicit “no” carries significant weight.

Why Was There Hope for a Pardon

SBF faces serious charges due to the collapse of FTX. Once valued at $32 billion, this crypto exchange suddenly went bankrupt in November 2022, triggering one of the biggest trust crises in the crypto industry. SBF was indicted and convicted on multiple charges including fraud and money laundering.

Against the backdrop of Trump returning to politics and showing a more friendly attitude toward cryptocurrencies, some members of the crypto community began to expect that Trump might consider pardoning or reducing SBF’s sentence. This expectation was based on several assumptions:

• Trump has a relatively open stance on cryptocurrency policies
• He has expressed support for digital assets like Bitcoin
• The power to pardon is within the president’s authority

However, Trump has now explicitly stated he has no such intention.

What Does This Indicate

Trump’s position sends several clear signals:

The boundaries of policy stance

Supporting the development of cryptocurrencies and pardoning individuals convicted of crypto-related crimes are two different things. Trump’s statement indicates that while he may be open to digital assets themselves, there is no tolerance for blatant fraud and illegal activities. This is an important distinction.

Emphasis on market trust

The collapse of FTX caused losses for millions of users and symbolizes a crisis of trust in the crypto industry. By refusing to pardon SBF, Trump is effectively signaling to the market that the government will not turn a blind eye to serious illegal conduct just to support the crypto sector. This could actually help rebuild market confidence.

Crypto-friendliness does not mean a lack of bottom line

The Trump administration can support the development of crypto assets while also pursuing wrongdoers. This balanced stance may be more beneficial for the long-term growth of the crypto industry than unconditional support.

Market Impact Assessment

In the short term, this news has limited direct impact on the market. SBF has already been convicted, and a pardon was never a high-probability event. However, in the long run, this clear policy signal could have the following effects:

• Dispel some illusions about “political pardons”
• Reinforce the need for self-discipline and compliance within the crypto industry
• Potentially facilitate the development of more rational crypto policy frameworks in the future

Summary

Trump’s lack of intention to pardon SBF is not a rejection of the crypto industry but a firm stance against illegal activities. Supporting crypto development and pursuing wrongdoers are not mutually exclusive. For the crypto sector, this clear policy boundary is actually healthy—it shows that supporting crypto growth does not mean abandoning the rule of law. For FTX’s creditors and victims, it also ensures that judicial procedures will not be overturned due to political factors.