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US Lawmaker Advocates for Cryptocurrency Prohibition for Politicians Following Trump’s Pardon of Binance’s CEO
US Representative Ro Khanna (D-Calif.) is advocating for new legislation that would prevent elected officials from owning or initiating cryptocurrencies, following President Donald Trump’s contentious pardon of Binance founder Changpeng “CZ” Zhao.
Key Takeaways:
- Rep. Ro Khanna intends to propose a bill that prohibits lawmakers from possessing or creating cryptocurrencies.
- This initiative comes in the wake of Donald Trump’s pardon of Binance founder Changpeng Zhao.
- Khanna accused Trump of “blatant corruption,” claiming financial connections between Zhao and the Trump family’s crypto enterprise, World Liberty Finance.
During an appearance on MSNBC’s Morning Joe on Monday, Khanna charged the president with engaging in “blatant corruption,” asserting that Zhao, a foreign billionaire found guilty of money-laundering offenses, had “funneled money to Hamas, Iran, and child abusers.”
He also implied that Zhao provided financial support to World Liberty Finance, a cryptocurrency initiative associated with Trump’s family.
Khanna Advocates for Crypto Prohibition for Lawmakers
“It is so illegal. It is right in our faces,” Khanna stated, contending that lawmakers should be prohibited “from possessing cryptocurrency and accepting foreign funds.”
Khanna’s remarks, subsequently shared on his official YouTube channel, misrepresented certain details regarding Zhao’s situation.
The former Binance CEO admitted guilt to money-laundering offenses as part of a $4.3 billion settlement with the US Department of Justice last year but served only four months in prison, contrary to Khanna’s assertion of four years.
The congressman mentioned that he plans to introduce the bill this week, positioning it as a continuation of his 2023 Ban Congressional Stock Trading Act, which aimed to prevent members of Congress and senior officials from trading individual stocks.
That bill faced delays in committee but contributed to broader bipartisan conversations about enhancing financial ethics for public officials.
Khanna indicated that his new proposal would reflect those principles, mandating lawmakers to divest from digital assets or place them in blind trusts to avoid conflicts of interest.
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“This isn’t a tech issue,” he remarked. “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.”
This initiative represents the latest political repercussions from Trump’s decision to pardon Zhao, a move that has faced significant criticism from Democrats and ethics advocates.
If passed, Khanna’s proposal would render cryptocurrency the latest asset class prohibited for federal lawmakers, highlighting Washington’s increasing discomfort with the convergence of politics, finance, and digital assets.
Binance Considers US Re-entry Following Trump’s Pardon of Founder Changpeng Zhao
Binance is reportedly investigating avenues to re-enter the US market following President Donald Trump’s pardon of founder Changpeng “CZ” Zhao, as reported by Bloomberg.
The exchange is contemplating options such as merging its US affiliate with its global platform or permitting its main exchange to directly serve American users.
Zhao’s pardon, granted after his 2023 guilty plea for anti-money laundering violations, has reignited scrutiny amid Binance’s $2 billion agreement with Trump’s family-supported crypto venture, World Liberty Financial.
The clemency eliminates previous legal restrictions that had limited his participation in Binance operations.
Legal experts assert that the move effectively restores Zhao’s capacity to make business decisions, providing a significant advantage to the company’s leadership as it seeks renewed access to the US market.
Zhao, whose net worth is estimated at $61.4 billion, remains one of the most influential figures in crypto, overseeing an ecosystem with $8.7 billion in on-chain assets.
The pardon occurs as Trump continues to engage with the digital asset sector, with his family reportedly earning over $1 billion from crypto ventures.
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