- Rep. Ro Khanna plans to introduce a bill banning elected officials from owning or trading cryptocurrencies, extending existing stock trading restrictions.
- The proposal follows President Trump’s pardon of Binance founder Changpeng Zhao, which Khanna labels as “blatant corruption” tied to financial links with Trump’s family crypto ventures.
- Crypto markets remain resilient, with $921 million in inflows to investment products last week, signaling renewed investor confidence.
Democratic Representative Ro Khanna announced plans to introduce legislation banning President Donald Trump, his family, and elected officials from trading cryptocurrencies and stocks, amid growing concerns over conflicts of interest in the crypto sector.
The move comes in direct response to Trump’s pardon of Binance founder Changpeng Zhao (CZ) on October 23, 2025. Khanna, during an MSNBC interview, described the pardon as “blatant corruption,” alleging Zhao’s financial support for Trump’s family crypto project, World Liberty Financial (WLFI). “You’ve got a foreign billionaire who was basically engaged in money laundering… and now he’s basically financing Donald Trump’s cryptocurrency stablecoin,” Khanna stated.
Zhao, who pleaded guilty to money laundering violations in 2023, served four months in prison and paid a $50 million fine as part of Binance’s $4.3 billion settlement with the U.S. Department of Justice. The pardon, announced by the White House, was justified as ending the Biden administration’s “war on crypto.” Zhao responded on X, thanking Trump and pledging to “make America the Capital of Crypto.”
Khanna’s bill builds on his 2023 Ban Congressional Stock Trading Act, which aimed to prevent lawmakers from profiting off privileged information. If passed, the new legislation could limit political involvement in crypto, potentially reducing perceived corruption but also restricting officials’ participation in the growing digital asset market.
Sen. Elizabeth Warren echoed criticisms, calling the pardon an example of corruption and urging Congress to address it in pending market structure legislation. Analysts note that while the proposal highlights risks of political entanglements, it may face bipartisan resistance in a pro-crypto administration.
Amid the controversy, crypto investment products saw $921 million in inflows last week, per CoinShares, with Bitcoin (BTC) leading at $931 million. Ethereum (ETH) experienced $169 million in outflows, reflecting mixed sentiment.
The developments underscore ongoing tensions between regulation and innovation in crypto, with stakeholders watching for impacts on market stability and policy.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
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