President Donald Trump’s recent pardon of Binance founder Changpeng “CZ” Zhao has ignited a fresh wave of political backlash in Washington and a new push to keep cryptocurrency out of the hands of elected officials.
In an interview this week, U.S. Representative Ro Khanna (D-CA) announced plans to introduce legislation that would ban members of Congress and other elected officials from owning or creating cryptocurrencies. Khanna said the proposed bill is designed to prevent conflicts of interest and curb the influence of foreign money in U.S. politics.
“This is blatant corruption,” Khanna said during the interview, calling Trump’s pardon of Zhao both “illegal” and “disgraceful.”
“You don’t need to know a lot about cryptocurrency to understand what went on here,” he added. “You’ve got a foreign billionaire who was basically engaged in money laundering, having money go to Hamas, Iran, and even child abusers. He was convicted, served time, and then gets a pardon after funding crypto projects linked to Trump.”
While Khanna’s description contained several factual inaccuracies including the claim that Zhao served four years in prison the congressman stood by his broader point, accusing the former president of granting clemency in exchange for crypto-related support.
Khanna alleged that Zhao had offered to “back World Liberty” and help finance Donald Trump’s cryptocurrency stablecoin, suggesting that the pardon was politically motivated.
Push for Crypto Restrictions in Politics
Khanna’s comments underscore a growing effort among Democrats to introduce stricter rules on digital asset ownership by government officials. He argued that lawmakers and political figures should not be allowed to own, trade, or launch cryptocurrency projects, citing the potential for financial manipulation and foreign interference.
“We need to make sure that no elected official is personally benefiting from cryptocurrency or accepting foreign money through these schemes,” Khanna said.
The upcoming legislation is expected to include provisions limiting campaign contributions tied to crypto holdings and foreign-backed digital asset ventures.
Trump’s Crypto Links Draw Lawmaker Scrutiny
The debate around Zhao’s pardon has also renewed scrutiny over Trump’s ties to the crypto industry. Lawmakers including Senator Elizabeth Warren have repeatedly raised concerns about possible conflicts of interest stemming from Trump’s personal and family crypto ventures.
Throughout the past year, the Trump family has expanded their presence in the digital asset space, launching products such as NFT trading cards, meme coins, and the WLFI token under World Liberty Financial, a firm reportedly valued at over $1 billion in 2025.
Despite mounting criticism, the White House has denied any wrongdoing, with Trump defending the pardon as a move to “reverse the Biden administration’s persecution of crypto innovation.” The former president also claimed to have “no relationship with CZ” or Binance.
A Divisive Moment for Crypto and Politics
The fallout from Zhao’s pardon highlights how deeply cryptocurrency has become intertwined with U.S. politics from campaign fundraising to financial policy debates.
If passed, Khanna’s proposed bill could reshape how politicians engage with digital assets, potentially setting new ethical boundaries for crypto involvement at the federal level.
For now, Trump’s pardon of the Binance founder remains one of the most polarizing political decisions in the ongoing clash between Washington regulators and the crypto industry’s growing influence.
