Curbing Officials' Income Act Aims to Restrict Cryptocurrency Activities by Public Officials

Senator Adam Schiff, along with several Democratic colleagues, has introduced the Curbing Officials' Income and Nondisclosure (COIN) Act, a legislative proposal aimed at restricting the involvement of high-ranking public officials in cryptocurrency activities. The bill seeks to address concerns over the potential for financial exploitation and conflicts of interest within the digital asset market.

The COIN Act specifically targets the president, vice president, high-ranking executive branch employees, special government employees, and members of Congress, prohibiting them from issuing, sponsoring, or endorsing digital assets such as meme coins, NFTs, or stablecoins. This prohibition extends 180 days prior to and two years after an individual's service, and also applies to their immediate family members. The legislation aims to prevent public officials from using their positions to profit from digital assets, thereby safeguarding the integrity of the government and the fairness of the cryptocurrency market.

The introduction of the COIN Act follows recent financial disclosure reports from the White House, which revealed that President Trump earned $57.3 million from his cryptocurrency venture with World Liberty Financial in 2024. This disclosure has raised significant ethical, legal, and constitutional concerns, prompting Senator Schiff and his colleagues to take action. The bill is cosponsored by several Democratic senators, including Lisa Blunt Rochester, Catherine Cortez Masto, and Angela Alsobrooks, among others.

The COIN Act includes several key provisions to enhance transparency and accountability in the digital asset market. It requires public officials to include digital assets in their annual financial disclosures and periodic transaction reports. Additionally, the legislation codifies that the issuance, purchase, sale, or holding of digital assets are considered financial interests that public officials must consider when recusing themselves from official matters under the criminal conflict of interest statute. Furthermore, the bill mandates that stablecoin issuers certify quarterly with the Office of Government Ethics and regulators that public officials are not personally profiting from the issuance of such stablecoins to receive regulatory approval.

The COIN Act also directs the Government Accountability Office to submit a report to Congress within 360 days, providing recommendations to update federal ethics laws to incorporate future regulatory frameworks related to digital assets. This provision aims to ensure that the legislation remains relevant and effective as the digital asset market continues to evolve.

The introduction of the COIN Act has been met with support from various advocacy groups, including Public Citizen, the Project on Government Oversight, Citizens for Responsibility and Ethics in Washington (CREW), and Democracy Defenders Action. These organizations have praised the legislation for its commonsense approach to preventing the financial exploitation of digital assets by public officials and for its potential to rebuild public trust in the government.

The COIN Act represents a significant step towards establishing ethical guardrails in the digital asset market and ensuring that public officials prioritize the interests of the American people over their personal financial gain. By prohibiting high-ranking officials from engaging in cryptocurrency activities, the legislation seeks to promote transparency, accountability, and fairness in the digital asset market, ultimately benefiting all Americans.