Ro Khanna Proposes Crypto Trading Ban for US Politicians
Democratic Representative Ro Khanna has introduced a new crypto trading ban bill in the US House. The proposed legislation would bar the president, vice president, members of Congress and their families from owning, creating or trading cryptocurrencies and stocks. It requires officials to place existing digital asset holdings in blind trusts during their term and for two years afterward, and to disclose all crypto transactions. The bill expands Khanna’s stalled 2023 Ban Congressional Stock Trading Act by adding memecoins, stablecoins, NFTs and DeFi platforms. It directly targets former President Trump’s alleged use of endorsements to boost opaque crypto ventures and criticizes Trump’s pardon of Binance CEO Changpeng Zhao. This crypto trading ban bill aims to strengthen oversight, prevent conflicts of interest and shape US crypto regulation.
Neutral
In the short term, the proposed crypto trading ban is unlikely to disrupt trading volumes or token prices since it targets politicians rather than retail or institutional market participants. The measure may, however, signal a broader push for regulatory clarity, affecting market sentiment. Over the long term, enhanced oversight could foster trust by reducing conflict-of-interest concerns, potentially supporting stable market growth. Overall, the bill’s focus on public officials limits its direct impact on crypto trading, resulting in a neutral market outlook.