Key Insights:
- U.S. Rep. Ro Khanna wants to ban President Trump, his family, and all members of Congress from trading crypto or stocks, citing corruption risks.
- Khanna accuses Trump of pardoning 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, while CZ rebuts claims of financing terrorism or political favors.
- Despite Khanna’s ethics push, data shows he’s traded over $580 million in stocks since 2017 — raising questions about double standards.
Rep. Ro Khanna (D–CA) announced Monday he will introduce a bill to bar President Trump crypto deals, his family and all members of Congress from trading stocks or cryptocurrencies.
Khanna said on MSNBC he is acting to prevent “conflicts of interest” after allegations emerged around Trump’s crypto connections.
He specifically cited Trump crypto firm (World Liberty Financial, or WLFI) and the recent pardon of Binance CEO Changpeng “CZ” Zhao as evidence of “blatant corruption.”
The news came amid broader debate in Washington over whether elected officials should hold market positions, as a separate bipartisan stock‑trading reform bill is poised for a vote.
Notably, Khanna’s own stock trading record is vast: data from Quiver Quant show he executed about $80.3 million in trades just in 2025 and over $580 million since 2017.
Lawmaker Targets Trump’s Crypto Ties
Khanna said his proposed legislation would ban the president, the First Family, and “any elected official” from buying or selling crypto or stocks.
He did not immediately file the bill, but on Monday shared a clip of his MSNBC appearance announcing the plan. In the interview, Khanna warned that Trump crypto dealings risk undermining trust in the markets.
He accused Trump of giving CZ Zhao a pardon after Binance (Zhao’s exchange) pledged support to WLFI, the Trumps’ stablecoin project.
“You’ve got a foreign billionaire who was basically engaged in money‑laundering,” Khanna said of Zhao, and “then he petitions for a pardon from Donald Trump after basically funneling money to terrorists.” Khanna characterized that sequence as evidence of pay‑to‑play in crypto.
Under the new proposed legislation, any public official, including the president, would be barred from holding crypto and from accepting foreign funds.
Khanna argued the ban would close loopholes for “foreign money” and crypto holdings that could influence policy. On the same day he announced the proposal, Khanna’s office confirmed on Congress.gov that the draft measure had not yet been officially introduced.
The idea follows similar ethics efforts – 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 push was triggered by WLFI, the cryptocurrency stablecoin launched by Donald Trump Jr. and Eric Trump. He alleged that Binance funneled millions to WLFI and that Trump repaid the favor by pardoning CZ Zhao.
In his comments Khanna emphasized that the Binance founder had pleaded guilty to violating U.S. anti‑money laundering laws in 2023. He said that after funding WLFI, Zhao “petitions for a pardon from Donald Trump” while still “basically financing Donald Trump’s cryptocurrency stablecoin.”
Khanna called Zhao’s pardon “blatant corruption.” He tied it directly to WLFI, arguing that Binance’s support of the Trump crypto project provided a quid pro quo.
“What he does is he says ‘I’m going to support World Liberty,’ which is the president’s son’s cryptocurrency firm, and Donald Trump gives him a pardon,” Khanna said. In other words, Khanna claims Trump’s crypto dealings have become entangled with official acts.
Pushback from Trump Camp and Binance
Eric Trump, who co-founded WLFI, has repeatedly denied any improper link between his father and the family crypto ventures.
In a Reuters interview published Sept. 3, 2025, Eric Trump said his father “has absolutely nothing to do with this venture,” explaining “he’s running a nation. He’s not involved in our businesses in any way, shape or form.”
Eric Trump called such conflict‑of‑interest claims “insane,” stressing that President Trump is not directing any crypto projects.
Changpeng Zhao likewise rejected the insinuations. On social media CZ criticized his accusers, including Sen. Elizabeth Warren, wrote that critics “can’t get their facts right” about his pardon.
Binance has acknowledged Zhao’s guilt for the Bank Secrecy Act violation. However, insists that he has no ties to terrorist financing or Trump’s crypto stablecoin. In short, the Trump family and Zhao both deny the claims of illicit coordination.
Observers noted that Khanna’s own financial activity might undercut his argument. Quiver Quantitative records show Khanna has logged over $580 million in stock trades. This was since he took office in 2017, spread across more than 35,000 transactions.
Even in 2025 alone he traded roughly $80.3 million in volume. His top sectors were financials, information technology and healthcare. Critics on social media have pointed out that a congressman promoting trading bans has a hefty personal portfolio.
Khanna is no stranger to ethics legislation – he co‑authored the STOCK Act extension and has advocated tighter trading rules.
He noted that Congress already plans a vote on a stock‑trading reform bill. But analysts say the scale of his own trades makes the optics tricky.
“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 that stance.