US Representative Advocates for Cryptocurrency Ban for Politicians Following Trump’s Pardon of Binance’s CZ

US Representative Advocates for Cryptocurrency Ban for Politicians Following Trump’s Pardon of Binance’s CZ

US Representative Ro Khanna (D-Calif.) is putting forward new legislation aimed at prohibiting elected officials from owning or launching cryptocurrencies. This move follows President Donald Trump’s controversial pardon of Changpeng “CZ” Zhao, the founder of Binance.

Key Takeaways:

Representative Ro Khanna intends to introduce a bill that would ban lawmakers from owning or creating cryptocurrencies.
This proposal comes on the heels of Donald Trump's pardon of Binance’s founder.
Khanna has accused Trump of “blatant corruption,” alleging a monetary connection between Zhao and the Trump family’s cryptocurrency venture, World Liberty Finance.

In an appearance on MSNBC’s Morning Joe on Monday, Khanna criticized the president for what he calls “blatant corruption,” claiming that Zhao, a foreign billionaire previously convicted of money-laundering offenses, had funneled money to groups like Hamas, Iran, and those involved in child abuse.

Khanna also suggested that Zhao provided financial backing for World Liberty Finance, a crypto initiative connected to Trump’s family.

Khanna Urges a Ban on Cryptocurrency for Lawmakers

Khanna asserted, “It is so illegal. It is right in our faces,” advocating for a prohibition that prevents lawmakers from possessing cryptocurrencies or accepting foreign donations.

His remarks, which were shared on his official YouTube channel, contained some inaccuracies related to Zhao’s situation. Although Zhao pleaded guilty to money-laundering violations linked to a $4.3 billion settlement with the US Department of Justice last year, he only served four months in prison, contradicting Khanna's claim of four years.

The congressman plans to unveil the new bill this week, presenting it as an extension of his 2023 Ban Congressional Stock Trading Act, which aimed to restrict Congress members and senior officials from trading individual stocks.

While that earlier bill did not advance, it sparked wider bipartisan discussions on enhancing financial ethics for public officials.

Khanna stated that the new legislation would adopt similar principles, requiring lawmakers to either divest from digital assets or place them in blind trusts in order to avoid conflicts of interest.

“This isn’t a tech issue,” he clarified. “This is a corruption issue. It’s money flowing into someone at the White House, with official actions taken, such as pardons, in exchange.”

The proposal represents the ongoing political consequences following Trump’s decision to pardon Zhao, attracting considerable criticism from Democrats and ethics watchdogs.

If passed, Khanna’s legislation would categorize cryptocurrencies as the latest asset class that federal lawmakers would be prohibited from engaging with, highlighting Washington's increasing concern over the interplay between politics, finance, and digital assets.

Binance Considers US Reentry Following Trump’s Pardon of Founder Changpeng Zhao

In related news, Binance is reportedly examining possibilities to re-enter the US market, owing to President Donald Trump's pardon of founder Changpeng “CZ” Zhao, as highlighted by Bloomberg.

The exchange is considering various strategies, such as merging its US affiliate with the global platform or allowing its primary exchange to directly serve American customers.

Zhao's pardon, granted after he pleaded guilty to anti-money laundering violations in 2023, has resurfaced scrutiny, particularly amid Binance’s $2 billion deal with Trump’s family-backed crypto company, World Liberty Financial.

This clemency has lifted previous legal restrictions that had hindered his participation in Binance's operations.

Legal experts suggest that the pardon effectively restores Zhao’s capacity to make business decisions, providing significant support to the company’s leadership as it seeks new access to the US market.

Zhao, whose net worth is currently $61.4 billion, remains one of the most influential figures in the cryptocurrency sector, managing an ecosystem with $8.7 billion in on-chain assets.

Trump continues to engage with the digital asset industry, reportedly earning over $1 billion through crypto ventures involving his family.