A heated political clash is emerging in Washington as Representative Ro Khanna calls for sweeping restrictions that would bar President Donald Trump, his family, and all members of Congress from owning or trading cryptocurrencies or stocks.
Khanna’s comments, made during an MSNBC interview, centered on what he described as an alarming conflict of interest between Trump’s presidency and his son’s crypto venture, World Liberty Financial (WLFI). The congressman claimed that Trump’s recent pardon of Binance co-founder Changpeng “CZ” Zhao raised questions about whether financial influence played a role in the decision.
Corruption Allegations Ignite Debate
The California Democrat accused Zhao—who pleaded guilty to violating U.S. anti-money-laundering laws—of benefiting from political favoritism. He alleged that Binance’s ties to WLFI, a project connected to Eric Trump, created the appearance of quid pro quo.
“This looks like a billionaire with global reach buying influence through a crypto project,” Khanna said, adding that the pardon “reeked of corruption.”
Zhao, however, has rejected similar accusations, previously telling critics like Senator Elizabeth Warren that their claims are “factually wrong.”
The pardon of Zhao is corrupt.
I explain simply what's going on.
I am today introducing legislation to ban the president, his family, members of Congress, and all elected officials from trading crypto or stocks. @unusual_whales has been sounding the alarm on this for years. pic.twitter.com/OgibgdnqkK
— Ro Khanna (@RoKhanna) October 27, 2025
WLFI’s Growing Political Shadow
WLFI, launched earlier this year, has become a lightning rod for political controversy. The project, associated with Eric Trump, has faced scrutiny from lawmakers questioning whether the president benefits indirectly from its operations. Eric has repeatedly dismissed those claims, saying his father “has nothing to do with our businesses” and that WLFI operates independently.
Even so, the project’s rapid rise has intensified debates about crypto’s expanding role in U.S. politics, with some policymakers warning that digital assets could become tools for lobbying and influence.
Khanna’s Proposal Targets Broader Ethics Issues
Khanna’s proposal aims to close what he sees as a widening gap between political power and private financial interests. Though the bill has not yet been formally introduced, it would reportedly bar presidents, lawmakers, and their families from trading crypto or equities during their time in office.
He also urged tighter restrictions on accepting foreign-linked digital assets, calling crypto “a new frontier for hidden money in politics.”
This push comes as Congress debates a bipartisan bill to restrict lawmakers’ stock trading — a reform effort that has lingered for years amid public outrage over insider trading scandals.
Questions Over Khanna’s Own Trades
Ironically, Khanna’s call for reform has spotlighted his own extensive market activity. According to Quiver Quantitative, the California representative has engaged in over 35,000 trades since taking office in 2017, totaling $580 million in cumulative volume. In 2025 alone, his transactions reached $80 million, mainly across tech, finance, and healthcare sectors.
Critics argue that Khanna’s own trading history undermines his credibility on the issue, suggesting that his proposal may be politically motivated rather than rooted in ethics reform.
Reform or Political Theater?
While Khanna insists his goal is to “restore trust in government,” the proposal has deepened partisan divides. Trump allies view the move as a targeted attack, while ethics advocates believe it could set a new standard for financial transparency among elected officials.
For now, Khanna’s plan remains a political statement rather than active legislation, but it has reignited a long-standing question: Should those who write the nation’s financial laws be allowed to personally profit from the markets they regulate?
