Tillis specifically pointed out the polarized political climate and the ongoing government shutdown that delayed key bills like the CLARITY Act. Meanwhile, Representative Ro Khanna called for a ban on President Donald Trump, his family, and members of Congress trading crypto or stocks, alleging conflicts of interest tied to Trump’s son’s crypto project, World Liberty Financial. Despite his strong stance, Khanna’s own extensive stock trading history has drawn some scrutiny.
Elections Slow Momentum for Crypto Reform
North Carolina Senator Thom Tillis, a Republican member of the US Senate Banking Committee, warned that time is running out for Congress to pass meaningful crypto legislation before the upcoming election cycle grinds progress to a halt. Speaking to Bloomberg, Tillis said that lawmakers have only a few months — until around January or February — to finalize any digital asset legislation before political priorities shift toward the 2026 midterm elections.
Tillis pointed out that the divisive political climate could make it nearly impossible for Congress to advance major bills on digital assets, stablecoins, or market structure reforms once campaign season begins. “I’m not optimistic about us moving much further on anything around digital assets, stablecoins, or crypto in this Congress,” he said. He is very sceptical that the current legislative session, which ends in January of 2027, will yield major results for the digital asset industry.
Senator Thom Tillis
The warning was made amid the government shutdown that began on Oct. 1, after lawmakers failed to agree on a funding bill due to disputes over healthcare spending and subsidies. The shutdown stalled progress in the House of Representatives, where Speaker Mike Johnson reportedly delayed legislative business since before the funding impasse began.
This delay also affected several key crypto-related bills, including the CLARITY Act, which passed the House in July. Senate leaders previously pledged to “build on” the bill as part of efforts to establish a comprehensive crypto market framework.
Senator Cynthia Lummis, another Republican on the Senate Banking Committee and one of the chamber’s most well known crypto advocates, said before the shutdown that the Senate’s version of the bill — the Responsible Financial Innovation Act — could become law by 2026. However, Tillis’s latest comments suggest that optimism may now be fading.
To add to this, over the weekend, Michael Selig from the Securities and Exchange Commission (SEC) announced that President Donald Trump nominated him to serve as chair of the Commodity Futures Trading Commission (CFTC), a key agency overseeing derivatives and crypto markets. His confirmation hearing was not on the Senate calendar on Monday, which leaves some uncertainty about when he might assume the role and how his leadership could shape the direction of US crypto regulation.
Ban Sought on Politicians Trading Crypto
The link between crypto and politics is becoming more and more clear. In fact, US Representative Ro Khanna recently called for a sweeping ban that would prevent President Donald Trump, his family, and all members of Congress from trading cryptocurrencies or stocks, due to concerns over conflicts of interest and corruption.
Speaking on MSNBC, the California Democrat and vice-chair of the Congressional Progressive Caucus accused Trump of using his presidential powers to benefit his family’s financial interests through his son’s crypto project, World Liberty Financial (WLFI).
Khanna specifically pointed to the recent pardon of Binance co-founder Changpeng “CZ” Zhao, and called it an act of “blatant corruption.” He claimed CZ, whom he described as “a foreign billionaire engaged in money-laundering,” received leniency in exchange for Binance’s alleged financial backing of WLFI, which he said was “making millions of dollars” while Trump was in office. “Donald Trump gives him a pardon while he is basically financing Donald Trump’s cryptocurrency stablecoin,” Khanna said.
CZ
CZ has faced a lot of criticism since pleading guilty to one felony count of violating the US Bank Secrecy Act for failing to maintain an effective anti-money-laundering program at Binance. However, he strongly rejected accusations that his company supported terrorism or bribed political figures, and recently rebuked Senator Elizabeth Warren for what he called repeated factual inaccuracies.
Khanna’s opinions are very similar to comments made by Representative Maxine Waters, who also raised concerns about Binance’s ties to WLFI. Trump’s son, Eric Trump, consistently denied that his father has any involvement with the project, and said in September that the president “is running a nation” and “not involved in our businesses in any way.”
While Khanna did not provide specifics about his legislative proposal, he concluded his remarks by urging a complete prohibition on government officials owning crypto or receiving foreign money. However, questions have also been raised about his own financial activities.
According to data from Quiver Quant, Khanna executed more than $80 million worth of stock trades in 2025 alone, and over $580 million in total since taking office in 2017, with major holdings across financial, technology, and healthcare sectors.
