Khanna Pushes for Ban on Officials Trading Crypto and Stocks
U.S. Representative Ro Khanna has launched new efforts to ban elected officials and their families from trading cryptocurrencies or stocks. His proposal specifically targets World Liberty Financial (WLFI), which he described as “the president’s son’s cryptocurrency firm.” The move comes as WLFI completes a $26.7 million token burn and shows early signs of price recovery.
Khanna Links WLFI to Binance Founder’s Pardon
Khanna, a Democrat from California and vice-chair of the Congressional Progressive Caucus, voiced his concerns on MSNBC earlier this week. He claimed that the recent pardon of Binance founder Changpeng “CZ” Zhao by President Donald Trump represented “blatant corruption.” “You’ve got a foreign billionaire who was basically engaged in money-laundering,” Khanna said during the interview. He alleged that CZ’s financial links to WLFI might have influenced Trump’s decision to pardon him.
CZ, who pleaded guilty to one count of violating the U.S. Bank Secrecy Act, has denied such claims. He also rejected similar allegations from Senator Elizabeth Warren, saying she “can’t get her facts right.”
Khanna argued that Binance’s support of WLFI created a conflict of interest within the Trump family. “He says, ‘I’m going to support World Liberty,’ which is the president’s son’s cryptocurrency firm,” Khanna stated. “They’re making millions of dollars while Donald Trump is president.”
He called for a complete ban on elected officials and their families holding or trading cryptocurrencies. He also proposed blocking foreign entities from financially influencing U.S. political figures. Despite Khanna talking publicly about the proposal, the government records indicate that the bill has not been brought to Congress. The future of the legislation remains unclear since it is yet to be formally introduced and may be discussed by the committee.
WLFI Faces Political Scrutiny and Market Activity
WLFI, often linked to Eric Trump, has drawn increased attention since Khanna’s remarks. Eric Trump has repeatedly denied that his father has any role in the project. In a September interview, he said, “He’s running a nation. He’s not involved in our businesses in any way, shape, or form.”
Despite the political controversy, WLFI made headlines in the crypto market this week after burning 175 million tokens worth $26.72 million. Analyst Emmett Gallic confirmed the transaction on X, noting that the tokens were permanently removed from circulation.
The burn occurred on October 27 at around 7:30 p.m. UTC, according to blockchain records. The event reflected a strategic move with significant implications for token supply. This action immediately sparked discussions across the crypto community about WLFI’s next phase.
After the burn, the token’s price rebounded above $0.15 before retracing to $0.14 level, according to CoinMarketCap. This price movement could mark the beginning of a recovery phase as WLFI rebuilds market momentum.
For WLFI, the combination of its $26.7 million token burn and heightened scrutiny marks a defining moment. As political tensions rise, investors are weighing both the project’s fundamentals and the broader implications of Washington’s attention. Whether WLFI emerges stronger or faces tighter regulatory oversight will depend on how the market and lawmakers respond in the weeks ahead.