California Democrat Introduces Bill Banning Politicians From Crypto Trading

2 hours ago by · 3 mins read

Rep. Ro Khanna calls President Trump’s pardon of Binance founder Changpeng Zhao “blatant corruption” as he unveils new trading restrictions.

Rep. Ro Khanna (D-Calif.) announced Monday he is introducing legislation to ban the president, his family, members of Congress, and all elected officials from trading stocks or cryptocurrency.

The California congressman represents Silicon Valley and serves on the House Oversight Committee.

The bill would prohibit elected officials from owning, creating, or trading cryptocurrencies and stocks, according to footage from MSNBC.

Khanna also told NBC Bay Area the legislation would be officially announced on Oct. 28. Coinspeaker is monitoring the official channels for the release of the bill.

Khanna described the proposed ban as a direct response to what he called “blatant corruption” during interviews on MSNBC’s Morning Joe and The Last Word.

He stated the pardon occurred “right in our faces” and said officials should be banned “from having cryptocurrency and accepting foreign money.”

Background on Zhao’s Conviction

Changpeng Zhao pleaded guilty to money laundering violations in 2023 as part of a $4.3 billion settlement with the U.S. Department of Justice.

He was sentenced to four months in prison and stepped down as Binance CEO. President Trump recently granted pardon to Zhao, removing legal barriers that had limited his operations.

The White House described the prosecution as part of the Biden administration’s alleged “war on cryptocurrency,” according to Press Secretary Karoline Leavitt.

World Liberty Allegations

Khanna alleged Zhao pledged support for World Liberty, which the congressman identified as “the president’s son’s cryptocurrency firm.”

He claimed the firm is “making millions of dollars” while Trump serves as president. Khanna stated Zhao was “basically financing Donald Trump’s cryptocurrency stablecoin” and called the arrangement “so illegal.”

Khanna previously authored the Ban Congressional Stock Trading Act in 2023, which aimed to prevent lawmakers from trading individual stocks while in office.

The bipartisan bill stalled in committee and was never enacted. The new proposal extends similar restrictions to cryptocurrency holdings.

Broader Policy Implications

President Trump is known to invest heavily in crypto, according to NBC Bay Area. The next Federal Reserve Chair selection could affect the regulatory environment for digital assets.

Treasury Secretary Scott Bessent confirmed a five-person shortlist for the position, with a decision expected by year-end.

Trump signed the GENIUS Act into law earlier this year, establishing a U.S. stablecoin regulatory framework. The legislation guarantees full reserve backing and Federal Reserve support for dollar-denominated stablecoins.

The bill would require passage in both the House and Senate. Khanna stated he hopes for bipartisan support, noting that controversial trading practices by politicians have drawn criticism from both parties.

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