Democrats' Anti-Crypto Bill Sparks Partisan Battle Over Trump Ties

U.S. Democrats have introduced a sweeping anti-cryptocurrency bill aimed at curbing the influence of digital assets among public officials and their families, with critics alleging it directly targets President Donald Trump and his pro-crypto ventures. The proposal, led by Representative Ro Khanna (D-Calif.), seeks to prohibit elected officials from engaging in cryptocurrencies, memecoins, stablecoins, NFTs, and decentralized finance (DeFi) platforms while in office. It also mandates that officials transfer their digital assets into "blind trusts" during and after their terms and enforce full disclosure of crypto transactions .

Khanna, a vocal critic of Trump's crypto ties, argued the bill addresses conflicts of interest and unethical profiteering. "No one should hold an elected office to profit from their position," he stated, citing Trump's family's involvement in projects like World Liberty Financial (WLFI), a crypto initiative linked to Binance founder Changpeng Zhao. The bill further accuses the Trump family of leveraging their name and influence to promote an "opaque and largely unregulated network" of crypto ventures .

The proposal aligns with broader Democratic efforts to roll back Trump's pro-crypto policies. Last month, Trump pardoned Zhao, who had pleaded guilty to anti-money laundering violations, a move Khanna condemned as "blatant corruption." The White House defended the pardon, asserting it ended the "anti-crypto war" waged by the Biden administration and restored U.S. leadership in innovation. "The extreme approach of the previous administration damaged America's global standing," said Karoline Leavitt, a White House spokesperson .

While the bill faces an uphill battle in a Republican-led House, it reflects intensifying partisan divides over crypto regulation. Separately, Trump's nominee to head the Commodity Futures Trading Commission (CFTC), Michael Selig, a pro-crypto lawyer, has pledged to prioritize digital assets, signaling a potential shift toward industry-friendly policies .

The Democratic push comes as crypto-related legislative efforts gain traction elsewhere. In New Hampshire, a bill to deregulate crypto mining stalled after public backlash over its potential environmental impact. House Bill 639, sponsored by Republican Rep. Keith Ammon, would block local restrictions on mining operations and create a blockchain-focused court docket. However, a 4–2 Senate committee vote sent the measure for further study amid concerns over energy consumption .

Meanwhile, the debate over crypto's role in retirement savings has escalated. Senator Elizabeth Warren (D-Mass.) criticized Trump's executive order allowing 401(k) plans to include cryptocurrencies, calling them "shadowy markets" lacking sufficient safeguards. "We can't let Wall Street gamble with Americans' hard-earned savings," she wrote on X, echoing bipartisan concerns about investor protection .

Khanna's bill also intersects with ongoing congressional clashes over transparency. The Democrat has partnered with Republican Rep. Thomas Massie on a discharge petition to force a vote on releasing classified files related to Jeffrey Epstein, a move Massie called out, likening it to the accountability seen in the U.K. after Prince Andrew's title revocation. "Rich and powerful men in the U.S. have immunities exceeding those of British Royalty," Massie tweeted, drawing parallels between Epstein-linked crypto networks and political impunity .

As the 2026 election approaches, crypto policy is emerging as a key battleground. With Trump's pardon of Zhao boosting Binance's native token BNB by 8% and fueling WLFI's market capitalization, critics warn of foreign influence and regulatory capture. "This isn't about politics-it's about justice and transparency," Khanna reiterated, framing the bill as a response to what he called a "culture of impunity" among elites .