Senate Bill Aims to Ban Presidents from Crypto Ventures

The COIN Act, introduced by Sen. Adam Schiff, aims to prevent U.S. Presidents and their families from engaging in cryptocurrency ventures. The full name of the bill is the Curbing Officials’ Income and Nondisclosure Act. This legislation is not specifically targeted at disrupting Donald Trump's cryptocurrency business but rather seeks to prohibit all sitting presidents, vice presidents, and their immediate family members from leveraging their positions in the crypto space and other financial sectors. The act extends its regulations to the endorsement and issuance of securities, commodities, and futures, effectively banning the use of their names or images for promoting crypto ventures. However, it does not prohibit the purchase, holding, or transfer of cryptocurrencies by these officials, who are still required to disclose their crypto assets like other financial holdings.

Violations of the COIN Act can result in penalties, including the disgorgement of illegal profits to the U.S. Treasury. If the violation causes an aggregate loss of $1,000,000 or more to U.S. citizens or involves bribery, violators may face criminal prosecution. Insider trading and fraud are also prohibited under this act. Democrats have previously attempted to include similar regulations in the Genius Act, which focused on stablecoins, but these efforts were unsuccessful. The failure to amend the Genius Act likely motivated the creation of the COIN Act, which is specifically designed to address the ties between top officials and the business world.

Donald Trump and his family are closely associated with several cryptocurrency projects, making the COIN Act a significant threat to their financial interests. In a video posted on X, Schiff highlighted that Trump has made substantial amounts of money from selling branded goods and, more lucratively, from cryptocurrency schemes. One such scheme involves the Official Trump memecoin, whose proceeds are not subject to disclosures because it was launched before Trump's inauguration. Another scheme mentioned is the stablecoin USD1, launched by World Liberty Finance, a company closely tied to Trump and his sons. Through his involvement in World Liberty Finance, Trump alone made $57 million in the first quarter of 2025. The COIN Act's ban on involvement in the crypto business, which extends from 180 days pre-term to two years post-term, would make the proceeds from these ventures illegal.

In January 2025, Trump Media and Technology Group, the parent company behind Truth Social, announced plans to allocate $250 million in cryptocurrencies through a new platform called Truth.Fi. Additionally, Eric Trump is the chief strategic officer of American Bitcoin, a mining venture that announced plans to go public in May, with 98% of the company owned by Eric Trump and Donald Trump Jr. The COIN Act's potential passage could significantly impact these ventures, as it would restrict the Trump family's involvement in the crypto business.

Schiff has shown support for the GENIUS Act despite the omission of restrictions on crypto businesses for senior officials, indicating his commitment to crypto innovation while addressing Trump's conflict of interest. As of now, the COIN Act has the backing of nine Senate Democrats, but its success remains uncertain. Republicans have previously shown no interest in limiting Trump's involvement in the crypto business, suggesting that the COIN Act may face rejection similar to the amendments to the GENIUS Act. However, the future of this defining bill remains to be seen.