Senator Schiff Introduces Bill to Ban Crypto Activities by Public Officials

US Democratic Senator Adam Schiff has introduced the Curbing Officials’ Income and Nondisclosure (COIN) Act, a legislative proposal aimed at restricting the cryptocurrency activities of public officials. The bill seeks to prohibit current and recent top officeholders, including the president, vice president, cabinet members, and their immediate families, from issuing, sponsoring, or endorsing cryptocurrencies, stablecoins, NFTs, or memecoins during their term. This legislation also includes a buffer period of 180 days before and two years after leaving office.

The COIN Act mandates public disclosure of digital asset sales exceeding $1,000 and imposes steep penalties, including prison time, for violators. Schiff's move is seen as a direct response to Donald Trump’s growing involvement in the crypto industry, particularly his association with World Liberty Financial (WLF), a crypto firm that launched the USD1 stablecoin. Trump reportedly earned over $57 million in 2024 from his involvement with WLF.

The bill has garnered support from nine other Senate Democrats, who argue that Trump's crypto dealings represent a serious conflict of interest and a violation of public trust. Senator Ben Ray Luján, one of the supporters, stated that the president's use of the highest office to profit from a personal meme coin is beneath the presidency and constitutes blatant corruption. The COIN Act aims to ensure that the president and their immediate family cannot exploit public office to cash in on digital assets.

WLF has reportedly seen massive inflows and attracted international interest, with a $2 billion transaction involving USD1 announced by an Abu Dhabi-based firm. The Trump family has scaled down its stake in WLF from 75% to 40%, a move critics suggest is an effort to mitigate scrutiny without relinquishing profit.

The COIN Act is part of a series of recent Democratic proposals aimed at addressing ethical and legal concerns tied to public officials' involvement in cryptocurrencies. However, the bill faces an uphill battle in a Republican-controlled Congress. Even if the bills were to clear both chambers, the likelihood of a presidential veto looms large.

Schiff's legislation seeks to expand the reporting requirements of the existing STOCK Act to include digital assets, which would require public officials to disclose their cryptocurrency holdings and transactions. The bill is designed to block Trump's memecoin ventures and prevent the pursuit of personal gain using digital assets. Schiff criticized Trump's crypto investment and ventures, stating that senior administration officials have engaged in financial misconduct involving digital assets.

The COIN Act is a significant step towards regulating the cryptocurrency industry and ensuring that public officials are held accountable for their financial activities. The bill is expected to face opposition from the cryptocurrency industry, which has long advocated for self-regulation and minimal government oversight. However, the COIN Act is a necessary step towards ensuring that the cryptocurrency industry is held to the same ethical standards as other financial industries. The bill is also expected to face opposition from some members of Congress, who may be concerned about the potential impact on the cryptocurrency industry.