A presidential pardon is a significant authority granted to the President of the United States by the U.S. Constitution, allowing for the forgiveness of federal crimes. Once issued, a pardon can’t be overturned. Not by Congress. Not by the courts. Historically, presidents have utilized this power to demonstrate clemency or address potential miscarriages of justice.
Historical Context of Pardons
Presidential pardons have often sparked debate. For instance, President Gerald Ford‘s 1974 pardon of former President Richard Nixon following the Watergate scandal was contentious; some believed it facilitated national healing, while others felt it allowed wrongdoing to go unpunished.
Similarly, President Bill Clinton’s 2001 pardon of financier Marc Rich, who had fled the U.S. to evade charges including tax evasion and illegal trading, drew criticism over fairness and the integrity of the pardon process.
Recent Pardons
In 2025, President Donald Trump issued pardons to several individuals associated with the cryptocurrency industry who had been convicted of federal offenses related to financial regulations:
Arthur Hayes: As CEO and co-founder of BitMEX, Hayes pleaded guilty in 2022 to violating the Bank Secrecy Act (BSA) by failing to implement an adequate anti-money laundering (AML) program at the exchange. He received a sentence that included six months of home confinement, two years of probation, and a $10 million fine. President Trump granted him a full pardon on March 28, 2025.
Benjamin Delo: Also a co-founder of BitMEX, Delo faced similar charges and, in 2022, pleaded guilty to BSA violations due to the company’s insufficient AML protocols. His sentence comprised 30 months of probation and a $10 million penalty. He was pardoned on March 28, 2025.
Samuel Reed: Serving as BitMEX’s Chief Technology Officer, Reed admitted in 2022 to BSA violations related to the platform’s AML deficiencies. He was sentenced to 18 months of home detention, two years of probation, and a $10 million fine. President Trump issued his pardon on March 28, 2025.
Gregory Dwyer: As Head of Business Development for BitMEX, Dwyer pleaded guilty to BSA violations and was sentenced to one year of home detention and a $1.5 million fine. He received clemency on March 28, 2025.
Ross Ulbricht: Founder of the Silk Road online marketplace, Ulbricht was convicted in 2015 on multiple charges, including conspiracy to commit money laundering, computer hacking, and narcotics trafficking, resulting in a life sentence without parole. President Trump granted him a full pardon on January 21, 2025.
Trevor Milton: Founder of Nikola Corporation, Milton was convicted of securities fraud for misleading investors about the company’s technological capabilities. He was sentenced to four years in prison and ordered to repay investors. President Trump pardoned him on March 28, 2025.
Policy Shifts
There have also been notable changes in the U.S. government’s approach to cryptocurrency regulation:
- Sanctions Lifted on Tornado Cash:
On March 21, 2025, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) officially removed sanctions against Tornado Cash, a decentralized tool used to mix cryptocurrency. The decision came after a federal appeals court ruled that the Treasury went beyond its legal powers when it originally imposed the sanctions. Disbanding of the National Cryptocurrency Enforcement Team (NCET): The U.S. Department of Justice announced the dissolution of the NCET on April 8, 2025. This decision reflects a strategic shift to focus on prosecuting individuals who use digital assets for serious crimes, such as terrorism and human trafficking, rather than pursuing regulatory violations in the cryptocurrency space.
Securities and Exchange Commission (SEC) Enforcement Changes: The SEC has recently dismissed or paused several high-profile cases involving cryptocurrency firms, indicating a move towards regulatory clarity and collaboration with the digital asset industry. Notable changes to ongoing activities include:
Coinbase:
On February 27, 2025, the SEC and Coinbase agreed to end the ongoing lawsuit, officially dismissing the case.Ripple Labs:
On March 19, 2025, Ripple Labs shared that the SEC dropped its appeal in the XRP case, bringing the legal battle to a close.Kraken:
In March 2025, the SEC decided to withdraw its lawsuit against Kraken, which had accused the exchange of operating without proper registration.Gemini:
The SEC and Gemini asked for a 60-day pause in their legal case to try and reach a settlement over the Gemini Earn program.Uniswap Labs: The SEC closed its investigation into Uniswap Labs without pursuing enforcement action, as announced in February 2025.
Robinhood Crypto: Robinhood announced in February 2025 that the SEC’s Enforcement Division had closed its investigation into the company’s crypto arm without pursuing enforcement action.
Consensys: Consensys reached an agreement in principle with the SEC, leading to the withdrawal of the enforcement case related to its MetaMask wallet.
So What?
The rollback of enforcement, the pardoning of high-profile figures, and the retreat from aggressive regulatory oversight signal a new chapter in the government’s approach to financial technology and decentralized systems.
This pivot raises urgent questions about the future: How will financial crimes be investigated and prosecuted in a decentralized world? What safeguards will protect consumers, markets, and national security? And is the U.S. now betting that leadership in digital finance depends more on innovation than enforcement?
The answers are unfolding in real time—and they may shape the next era of financial law, global competitiveness, and civil liberties.