Trump's Crypto Pardon Sparks Firestorm as Khanna Pushes for Trading Ban

Representative Ro Khanna (D-Calif.) has delivered a sharp rebuke of President Donald Trump’s involvement with cryptocurrency, accusing his administration of engaging in “unprecedented” self-enrichment and promising to propose a resolution that would bar the president, his relatives, and members of Congress from trading cryptocurrencies or accepting foreign funds, as reported by

. This initiative comes in the wake of Trump’s contentious decision to pardon Binance founder Changpeng “CZ” Zhao, a foreign national previously found guilty of breaking U.S. anti-money laundering regulations, and increases scrutiny of the Trump family’s connections to , a stablecoin project associated with Binance, according to a .

Khanna, who has long criticized Trump’s financial conduct, accused the president of leveraging his position for “excessive” personal gain, pointing to Zhao’s investment in the Trump-endorsed stablecoin

(USD1) as an example, Benzinga reported. The resolution, expected to be introduced Monday, would forbid the president and his family from participating in crypto transactions or accepting foreign investments—an explicit response to what Khanna described as entrenched corruption. The Trump family’s financial involvement with USD1 has attracted criticism from both parties, especially after Zhao, who received a four-month prison sentence for regulatory breaches, was granted a full pardon by Trump, according to a .

During a press briefing, Trump justified his decision to pardon Zhao, stating he was told Zhao’s actions “did not even constitute a crime” and that the previous administration had “targeted” him, according to Cointelegraph. The pardon has ignited a political uproar, with Democratic figures such as Senator Elizabeth Warren (D-Mass.) denouncing it as favoritism. Meanwhile, Binance’s lobbying activities in Washington—including $450,000 paid to individuals linked to Trump and $290,000 to former SEC candidate Teresa Goody Guillén—have raised suspicions about the reasons behind the pardon, as detailed in a

.

This controversy highlights deeper disputes within the cryptocurrency industry. While Trump’s executive order to position the U.S. as a “crypto capital” has been welcomed by industry leaders like CZ, who vowed to “generate significant wealth for the nation,” critics argue that the pardon sets a precedent for leniency toward regulatory offenders, Cointelegraph noted. Legal experts also point out that a presidential pardon does not erase Zhao’s conviction, leaving his criminal record and potential civil liabilities intact, according to a

.

Khanna’s proposed resolution reflects increasing demands for openness in cryptocurrency policy. Having previously supported Bitcoin as a strategic reserve, the congressman described the ban as essential to avoid conflicts of interest, Benzinga reported. His office also emphasized USD1’s involvement in a $2 billion transaction between Abu Dhabi’s MGX and Binance earlier this year, further complicating the Trump family’s claims of financial independence, according to Benzinga.

The White House has not issued a statement regarding the resolution, while Binance expressed gratitude to Trump for “his leadership” in promoting cryptocurrency adoption. As debate over crypto regulation grows more heated, Khanna’s proposal marks a possible shift in congressional oversight, with Democrats using the issue to spotlight what they call Trump’s “damaging” financial behavior, Benzinga reported.