Key Insights
- •U.S. Rep. Ro Khanna proposes a bill to ban President Trump, his family, and all members of Congress from trading crypto or stocks, citing corruption risks.
- •Khanna alleges Trump pardoned Binance founder CZ Zhao in exchange for Binance’s support of Trump’s son’s crypto project, World Liberty Financial (WLFI).
- •Eric Trump denies his father’s involvement in WLFI, and CZ rebuts claims of financing terrorism or political favors.
- •Despite his push for ethics, data indicates Khanna has traded over $580 million in stocks since 2017, raising questions about potential double standards.
Rep. Ro Khanna (D–CA) announced Monday he will introduce a bill to bar President Trump, his family, and all members of Congress from trading stocks or cryptocurrencies. Khanna stated on MSNBC that he is taking this action to prevent “conflicts of interest” following allegations that emerged concerning Trump’s crypto connections.
He specifically pointed to the Trump crypto firm, World Liberty Financial (WLFI), and the recent pardon of Binance CEO Changpeng “CZ” Zhao as evidence of “blatant corruption.” This news emerged amidst a broader debate in Washington about whether elected officials should hold market positions, with a separate bipartisan stock-trading reform bill poised for a vote. Notably, Khanna’s own stock trading record is extensive; data from Quiver Quant shows he executed approximately $80.3 million in trades in 2025 alone and over $580 million since 2017.
Lawmaker Targets Trump’s Crypto Ties
Khanna explained that his proposed legislation would prohibit the president, the First Family, and “any elected official” from buying or selling crypto or stocks. While the bill had not been officially filed at the time of the announcement, Khanna shared a clip of his MSNBC appearance detailing the plan. In the interview, Khanna cautioned that Trump’s crypto dealings risk undermining trust in the markets.
He accused Trump of granting CZ Zhao a pardon after Binance, Zhao’s exchange, pledged support to WLFI, the Trumps’ stablecoin project. Khanna characterized this sequence as evidence of pay-to-play in the cryptocurrency sector, stating that a foreign billionaire engaged in money-laundering petitioned for a pardon from Donald Trump after funneling money to terrorists.
Under the proposed legislation, any public official, including the president, would be barred from holding cryptocurrency and from accepting foreign funds. Khanna argued that this ban would close loopholes for “foreign money” and crypto holdings that could influence policy. His office confirmed on Congress.gov that the draft measure had not yet been officially introduced. This initiative follows similar ethics efforts, as Congress is already considering a bipartisan bill to curb stock trades by lawmakers, but Khanna’s version would extend restrictions explicitly to cryptocurrency.
Allegations of Corruption
Khanna’s proposal was prompted by WLFI, the cryptocurrency stablecoin launched by Donald Trump Jr. and Eric Trump. He alleged that Binance funneled millions to WLFI and that Trump subsequently pardoned CZ Zhao as a reciprocal action. In his statements, Khanna highlighted that the Binance founder had pleaded guilty to violating U.S. anti-money laundering laws in 2023. He asserted that after funding WLFI, Zhao petitioned for a pardon from Donald Trump while simultaneously financing Donald Trump’s cryptocurrency stablecoin.
Khanna described Zhao’s pardon as “blatant corruption,” directly linking it to WLFI and arguing that Binance’s support for the Trump crypto project constituted a quid pro quo. He claimed that Trump’s crypto dealings had become entangled with official acts, stating that Zhao supported World Liberty, the president’s son’s cryptocurrency firm, and in return, Donald Trump granted him a pardon.
Pushback from Trump Camp and Binance
Eric Trump, who co-founded WLFI, has consistently denied any improper connection between his father and the family’s crypto ventures. In a Reuters interview published on September 3, 2025, Eric Trump stated that his father “has absolutely nothing to do with this venture,” emphasizing that the president is running a nation and is not involved in their businesses in any capacity. Eric Trump dismissed such conflict-of-interest claims as “insane,” stressing that President Trump is not directing any crypto projects.
Changpeng Zhao also rejected the insinuations. On social media, CZ criticized his accusers, including Senator Elizabeth Warren, and wrote that critics “can’t get their facts right” about his pardon. Binance has acknowledged Zhao’s guilt for the Bank Secrecy Act violation but insists that he has no ties to terrorist financing or Trump’s crypto stablecoin. Both the Trump family and Zhao deny the claims of illicit coordination.
Observers have noted that Khanna’s own financial activity might weaken his argument. Quiver Quantitative records show that Khanna has logged over $580 million in stock trades since taking office in 2017, spread across more than 35,000 transactions. Even in 2025 alone, he traded approximately $80.3 million in volume, with his top sectors being financials, information technology, and healthcare. Critics on social media have pointed out the irony of a congressman promoting trading bans while holding a substantial personal portfolio.
Khanna is not new to ethics legislation; he co-authored the STOCK Act extension and has advocated for tighter trading rules. He noted that Congress is already planning a vote on a stock-trading reform bill. However, analysts suggest that the scale of his own trades presents a challenging public perception. As one observation put it, “With $580 million in trade volume, Khanna has put himself in the spotlight even as he calls for new rules.” To his credit, Khanna has proposed requiring blind trusts or other firewalls for politicians’ investments, and his crypto bill echoes this stance.