US Representative Ro Khanna (D-Calif.) is proposing new legislation to prohibit elected officials from owning or launching cryptocurrencies, following President Donald Trump’s controversial pardon of Binance founder Changpeng “CZ” Zhao.
Key Takeaways:
- Rep. Ro Khanna plans to introduce a bill banning lawmakers from owning or creating cryptocurrencies.
- The move follows Donald Trump’s pardon of Binance founder Changpeng Zhao.
- Khanna accused Trump of “blatant corruption,” alleging financial ties between Zhao and the Trump family’s crypto venture, World Liberty Finance.
Speaking on MSNBC’s Morning Joe Monday, Khanna accused the president of engaging in “blatant corruption,” alleging Zhao, a foreign billionaire convicted of money-laundering violations, had “funneled money to Hamas, Iran, and child abusers.”
He also suggested Zhao financially backed World Liberty Finance, a cryptocurrency venture linked to Trump’s family.
Khanna Calls for Crypto Ban on Lawmakers
“It is so illegal. It is right in our faces,” Khanna said, arguing that lawmakers should be banned “from having cryptocurrency and accepting foreign money.”
Khanna’s comments, later shared on his official YouTube channel, mischaracterized some facts surrounding Zhao’s case.
The former Binance CEO pleaded guilty to money-laundering violations as part of a $4.3 billion settlement with the US Department of Justice last year but served only four months in prison, not four years as Khanna claimed.
The congressman said he intends to introduce the bill this week, framing it as an extension of his 2023 Ban Congressional Stock Trading Act, which sought to bar members of Congress and senior officials from trading individual equities.
That bill stalled in committee but helped spark broader bipartisan discussions on tightening financial ethics for public officials.
Khanna said his new proposal would mirror those principles, requiring lawmakers to divest from digital assets or place them in blind trusts, to prevent conflicts of interest.
“This isn’t a tech issue,” he said. “This is a corruption issue. It’s money going into someone at the White House, and the White House taking official actions like pardons in exchange.”
The push marks the latest political fallout from Trump’s decision to pardon Zhao, a move that has drawn sharp criticism from Democrats and ethics watchdogs.
If enacted, Khanna’s proposal would make cryptocurrency the latest asset class off-limits to federal lawmakers, underscoring Washington’s growing unease with the intersection of politics, money, and digital assets.
Binance Eyes US Comeback After Trump Pardons Founder Changpeng Zhao
Binance is reportedly exploring ways to re-enter the US market following President Donald Trump’s pardon of founder Changpeng “CZ” Zhao, according to Bloomberg.
The exchange is weighing options such as merging its US affiliate with its global platform or allowing its main exchange to serve American users directly.
Zhao’s pardon, granted after his 2023 guilty plea for anti–money laundering violations, has reignited scrutiny amid Binance’s $2 billion deal with Trump’s family-backed crypto venture, World Liberty Financial.
The clemency removes prior legal barriers that had restricted his involvement in Binance operations.
Legal experts say the move effectively reinstates Zhao’s ability to engage in business decisions, giving the company’s leadership a major boost as it eyes renewed US access.
Zhao, whose net worth stands at $61.4 billion, remains one of the most powerful figures in crypto, overseeing an ecosystem with $8.7 billion in on-chain assets.
The pardon comes as Trump continues to court the digital asset industry, with his family reportedly earning over $1 billion from crypto ventures.
The post US Representative Pushes Crypto Ban for Politicians After Trump Pardons Binance’s CZ appeared first on Cryptonews.
Credit: Source link