US Lawmaker Proposes Crypto Ban for Politicians After Trump Pardons Binance CEO
Peter Zhang Oct 28, 2025 12:18
US Representative Ro Khanna plans to introduce a bill prohibiting politicians from owning cryptocurrencies, following Trump's pardon of Binance's Changpeng Zhao.
In a bold legislative move, US Representative Ro Khanna (D-Calif.) has announced plans to introduce a bill aimed at prohibiting politicians from owning or creating cryptocurrencies. This development follows the controversial decision by former President Donald Trump to pardon Binance founder Changpeng Zhao, commonly known as CZ, according to CryptoNews.
Khanna's Legislative Proposal
Khanna's proposed legislation seeks to address what he perceives as a conflict of interest and potential corruption involving elected officials and digital assets. He argues that lawmakers should be barred from holding cryptocurrencies and accepting foreign funds, citing allegations of financial ties between Zhao and the Trump family’s crypto venture, World Liberty Finance.
In a recent interview on MSNBC’s Morning Joe, Khanna accused Trump of engaging in “blatant corruption,” suggesting Zhao had financial involvement with illicit activities including funneling money to Hamas, Iran, and child abusers. Zhao, who previously pleaded guilty to money-laundering violations, was granted a pardon after serving a brief prison term.
Details of the Proposed Bill
The upcoming bill is intended to extend the provisions of Khanna’s 2023 Ban Congressional Stock Trading Act, which aimed to restrict members of Congress from trading individual stocks. Although that bill stalled in committee, it sparked discussions on enhancing financial ethics for public officials. Khanna’s new proposal would require lawmakers to divest from digital assets or place them in blind trusts to avoid conflicts of interest.
Khanna emphasized, “This isn’t a tech issue. 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.”
Binance's Potential US Market Re-entry
Concurrent with these developments, Binance is reportedly exploring options to re-enter the US market following Zhao's pardon. According to Bloomberg, the exchange is considering strategies such as merging its US affiliate with its global platform or allowing its main exchange to operate directly in the US. Zhao’s clemency has removed previous legal barriers, potentially facilitating Binance's expansion in the American market.
Zhao remains a significant figure in the crypto industry, with a reported net worth of $61.4 billion and an ecosystem managing $8.7 billion in on-chain assets. The pardon has reignited scrutiny over Binance’s $2 billion deal with the Trump family-backed World Liberty Financial, amidst reports of substantial earnings from the family's crypto ventures.
As the political and financial implications of these events unfold, Khanna's proposed legislation highlights the ongoing debate over the intersection of politics and digital assets, underscoring the growing unease in Washington.
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