US Representative Ro Khanna (D-CA), Vice Chair of the Congressional Progressive Caucus and a member of the House Oversight Committee, announced plans to introduce legislation prohibiting the President, Vice President, members of Congress, and their immediate family members from owning, trading, or creating cryptocurrencies while in office.
The bill extends similar restrictions to individual stock trading, building on Khanna’s 2023 Ban Congressional Stock Trading Act. Officials would be required to divest existing crypto holdings or place them in blind trusts, limiting investments to diversified funds or government bonds.
Khanna’s announcement came during MSNBC interviews on Morning Joe and The Last Word, where he described the proposal as a response to “blatant corruption” in US politics. He specifically criticized President Donald Trump’s October 23, 2025, pardon of Binance co-founder Changpeng “CZ” Zhao, who had pleaded guilty to money-laundering charges in 2024 and served four months in prison.
Khanna alleged Zhao’s company provided financial and technical support to the Trump family’s World Liberty Financial (WLFI) crypto project — a stablecoin venture — creating a conflict of interest. “It’s money going into someone at the White House, and the White House taking official actions like pardons in exchange,” Khanna stated.
This isn’t the first such effort in 2025, in February, California State Rep. Sam Liccardo proposed the Modern Emoluments and Malfeasance Enforcement (MEME) Act to bar high-ranking officials from profiting from crypto.
In May, Sen. Michael Bennet (D-CO) introduced the STABLE GENIUS Act to prevent officials from issuing or endorsing digital assets without blind trusts. In June, Sen. Adam Schiff (D-CA) filed the COIN Act targeting the Trump family’s crypto promotions, including memecoins, NFTs, and stablecoins.
Khanna’s bill aims to address broader ethics concerns, including insider trading risks and foreign influence via crypto donations. It aligns with bipartisan pushes like the September 2025 Restore Trust in Congress Act, which bans stock and securities trades by lawmakers.
While the full bill text is pending formal introduction expected this week, details include: Ownership ban which prohibits holding, trading, or issuing crypto (e.g., Bitcoin, stablecoins, memecoins) by covered officials and immediate family.
Bars officials from launching or endorsing crypto projects to avoid self-dealing. Prevents accepting foreign-backed crypto investments or donations. Existing assets must be sold or placed in blind trusts; penalties for concealment (e.g., via private wallets).
Mirrors crypto rules for individual stocks, allowing only broad index funds or bonds. The measure seeks to “restore public confidence” by preventing officials from profiting on policies they influence, similar to the 2012 STOCK Act’s disclosure rules.
Ethics watchdogs and progressives praise it as a step toward integrity, especially amid crypto’s $1B+ ties to the Trump family. It could deter foreign lobbying, as seen with Binance’s alleged WLFI support.
Crypto advocates, including Coinbase CEO Brian Armstrong, argue it risks deterring tech-savvy leaders needed for balanced regulation. Some see hypocrisy, noting Khanna’s own stock holdings. Industry figures like Charles Hoskinson have slammed similar Democratic proposals as “power grabs.”
On X, reactions range from support (“common sense against corruption”) to mockery (“explain decentralization to him”). Passage is uncertain in a divided Congress, but it could gain traction via amendments to stock-trading bills.
If enacted, it might inspire global standards but tighten crypto firms’ lobbying. This development highlights escalating tensions between crypto innovation and political ethics, especially post-Trump’s pro-crypto executive actions.
