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U.S. Representative Ro Khanna (D-Calif.) has reignited the debate over political ethics and cryptocurrency regulation following President Donald Trump’s pardon of Binance founder Changpeng Zhao (CZ). Speaking on MSNBC’s Morning Joe on Monday, Khanna accused the president of engaging in “blatant corruption” and announced plans to introduce a new bill that would ban elected officials from owning or creating cryptocurrencies.
The proposal, which Khanna says is a response to growing “corruption concerns,” seeks to extend existing ethics restrictions on stock trading to digital assets—an area of finance that remains largely unregulated in Washington.
“You don’t need to know a lot about cryptocurrency to understand what went on here,” Khanna said. “You’ve got a foreign billionaire engaged in money laundering, having money go to Hamas, Iran, and child abusers—and then getting pardoned by the president.”
Khanna’s comments mark one of the strongest rebukes yet from a sitting lawmaker following Trump’s controversial pardon of Zhao, who pleaded guilty to money laundering violations in 2024 as part of a $4.3 billion settlement with the U.S. Department of Justice.
Misstatements and Controversy Around Zhao’s Case
During his remarks, Khanna misstated key facts about the case, claiming Zhao “served four years in prison” and was “convicted” of crimes—both of which are inaccurate. Zhao was sentenced to four months in prison after pleading guilty under a settlement agreement but was not formally convicted in a trial.
Despite the errors, Khanna stood by his broader argument, saying that Trump’s pardon represented a clear abuse of power, especially given Zhao’s alleged connections to digital asset projects linked to the Trump administration.
Khanna accused the former president of granting the pardon while Zhao was “basically financing Donald Trump’s cryptocurrency stablecoin,” and referenced World Liberty Finance, which he described as “the president’s son’s cryptocurrency firm.”
“It is so illegal. It is right in our faces,” Khanna added. “Elected officials should be banned from having cryptocurrency and accepting foreign money.”
Linking Crypto Ethics to Broader Anti-Corruption Goals
Khanna’s new initiative builds on his earlier efforts to improve government transparency and reduce conflicts of interest among public officials. In 2023, he introduced the Ban Congressional Stock Trading Act, a bipartisan bill that aimed to prevent lawmakers and their families from trading individual stocks while in office.
The act required legislators to divest personal holdings or place them in blind trusts, restricting investments to diversified index funds or U.S. Treasury securities. While that bill stalled in committee, it laid the groundwork for renewed efforts to tighten ethical standards in Washington—this time, focused on cryptocurrencies.
Khanna argues that similar restrictions must apply to digital assets, which he believes pose an even greater risk of conflicts of interest, insider trading, and foreign influence.
“This isn’t a tech issue—it’s a corruption issue,” Khanna said. “This is money that’s going into someone at the White House, and the White House is having official acts like pardons in exchange.”
Bipartisan Pressure Mounts for Crypto Oversight
Khanna’s remarks have sparked fresh debate in Congress about how to handle crypto ethics. While his proposal has not yet gained formal bipartisan support, it echoes concerns from lawmakers on both sides of the aisle who want stricter rules governing digital asset ownership by public officials.
A handful of Republican legislators have also expressed support for greater transparency in crypto holdings, particularly following high-profile cases involving Binance, FTX, and other major exchanges.
Political analysts note that the controversy surrounding Zhao’s pardon could accelerate calls for comprehensive ethics reform in Washington, especially as crypto continues to influence campaign financing and policymaking.
A Push for Public Trust Amid Political Scandal
Khanna insists that his ultimate goal is to restore public trust in government by removing financial incentives that could influence policy decisions. He believes that lawmakers should not profit from markets they have the power to regulate—whether through traditional equities or blockchain-based assets.
Although his 2023 stock trading bill never became law, it helped shape ongoing bipartisan conversations about financial ethics. With the crypto market now a growing force in the global economy, Khanna’s new proposal aims to close what he calls a “glaring ethical loophole” in digital asset oversight.
Whether his proposed ban will gain traction remains uncertain, but the timing—coming on the heels of Trump’s controversial pardon—has ensured that Khanna’s message resonates in both political and financial circles.
