After the Binance scandal, Democrat Ro Khanna proposes banning politicians from trading cryptocurrencies

Key points:

• Democrat Ro Khanna proposes banning politicians from owning cryptocurrency after Binance founder’s pardon
• Congressman Ro Khanna called Changpeng Zhao’s pardon an act of corruption and introduced a bill prohibiting elected officials from owning crypto assets

Democrat Ro Khanna, a member of the House of Representatives from California, introduced a bill prohibiting elected officials from owning, trading, or creating cryptocurrencies. The initiative followed Donald Trump’s pardon of Binance founder Changpeng Zhao, which Khanna called “blatant corruption.” According to the congressman, the incident undermines trust in the government and requires immediate action to prevent financial conflicts of interest.

Speaking on MSNBC’s Morning Joe program, Khanna said that officials should be prohibited not only from holding cryptocurrencies but also from accepting foreign funds to eliminate the influence of outside investors.

According to him, in a situation where a billionaire convicted of money laundering receives a presidential pardon, “ethical issues become not just a formality, but a national problem.” He emphasized that crypto assets held by officials pose a risk of direct conflict of interest and erode public trust in the government.

Political reaction and legislative initiative

Khanna proposed extending the principles of the 2023 Ban Congressional Stock Trading Act to cryptocurrencies. This document already prohibited members of Congress and their families from trading stocks while in office. The new bill supplements it by including the ownership and issuance of tokens, which should eliminate loopholes for politicians involved in crypto projects.

The congressman stressed that “the interference of financial interests in politics destroys public trust” and called for bipartisan support for the reform. Analysts note that this initiative reflects a global shift toward strict ethical standards and transparency in the regulation of digital assets.

According to a report by Coinotag, Khanna’s bill is part of a broader trend: starting in 2025, many countries will introduce restrictions on cryptocurrency ownership for public officials to minimize the risk of insider trading.

Experts believe that such measures strengthen trust in regulatory bodies and financial systems by eliminating conflicts of interest among politicians. Singapore already has a strict licensing regime for digital token providers, effectively excluding civil servants from participating in the unregulated crypto sphere.