Democratic Lawmakers Introduce COIN Act to Ban Officials from Crypto Profits

Democratic lawmakers in the United States have introduced the Curbing Officials’ Income and Nondisclosure (COIN) Act, a legislative measure aimed at preventing public officials, including the president and their immediate family members, from profiting off cryptocurrency. The bill, sponsored by Senator Adam Schiff and co-sponsored by nine other Democratic lawmakers, seeks to address concerns over the "financial exploitation of digital assets" by those in positions of power.

The COIN Act specifically targets high-ranking executive branch employees, special government employees, and members of Congress, prohibiting them from engaging in cryptocurrency-related businesses or transactions that could lead to personal financial gain. The legislation would apply for 180 days prior to taking office and continue for two years after leaving office. This restriction includes the issuance, sponsorship, or promotion of digital assets such as meme coins, NFTs, and stablecoins.

The bill also proposes amendments to the Ethics in Government Act, requiring digital assets to be included in financial disclosures and transaction reports. It further codifies that holding or trading crypto qualifies as a financial interest under conflict of interest laws, mandating officials to recuse themselves from related decisions. Additionally, the legislation requires stablecoin issuers to certify quarterly that no public official is profiting from the issuance of their tokens to receive regulatory approval.

The COIN Act comes in response to concerns over President Donald Trump’s financial ties to cryptocurrency ventures. Reports indicate that Trump earned $57.4 million in 2024 through World Liberty Financial, a crypto platform linked to his family. Senator Schiff highlighted the ethical and constitutional concerns raised by the president’s digital asset activities, pointing to what he described as Trump’s use of public office for personal financial gain.

Pressure to introduce such guardrails has been building for months, driven largely by Democratic lawmakers alarmed by Trump’s expanding crypto portfolio. Earlier this year, Rep. Maxine Waters accused Trump of using his memecoin, $TRUMP, to enrich himself while defrauding investors. In April, Waters raised alarms over World Liberty Financial’s USD1 stablecoin, warning that the token could become a tool for foreign actors to channel funds to the president. She has also condemned Trump’s private gala for top $TRUMP memecoin holders, calling it a “pay-to-play scheme” that blurred the line between campaign fundraising and political favor-trading.

These concerns have already translated into multiple Democratic-led legislative efforts. Waters and other lawmakers have backed bills such as the MEME Act, led by Rep. Sam Liccardo, and the Stop TRUMP in Crypto Act, both aimed at barring public officials and their families from owning or promoting digital assets while in office. Despite repeated objections, Trump has continued to expand his footprint in the digital asset sector. His family has backed multiple crypto ventures, including stablecoins and a reported stake in a Bitcoin mining project.

The COIN Act is part of a broader effort by Democrats to curb what they see as the misuse of power and influence by public officials. The bill seeks to prevent the president, vice president, and other high-ranking officials from using their positions to enrich themselves through cryptocurrency investments. This move is seen as a direct response to concerns raised about Donald Trump's involvement in crypto-related activities, which have been a subject of scrutiny and debate.

The introduction of the COIN Act is a significant step in the ongoing debate over cryptocurrency regulation in the United States. While the bill faces an uphill battle in a divided Congress, its proponents argue that it is a necessary measure to protect the integrity of the government and the public's trust in its institutions. The legislation, if passed, would set a precedent for how public officials are expected to handle digital assets, potentially influencing future regulations and policies in this rapidly evolving field.