Senator Schiff Introduces COIN Act to Ban Crypto Activities by Top Officials

Senator Adam Schiff has introduced the Curbing Officials’ Income and Nondisclosure (COIN) Act, a legislative proposal aimed at restricting the ability of U.S. presidents, vice presidents, cabinet members, and their immediate families from engaging in cryptocurrency-related activities. The bill seeks to ban these officials from issuing, sponsoring, or endorsing cryptocurrencies, stablecoins, NFTs, or memecoins during their term in office, as well as for a period of 180 days before and two years after leaving office. This 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 COIN Act also includes provisions for mandatory disclosure of digital asset sales exceeding $1,000 and imposes steep penalties, including prison time, for violators. Senator Schiff emphasized the necessity of the bill to address ethical, legal, and constitutional concerns tied to Trump’s crypto dealings. The legislation has garnered support from nine other Senate Democrats, several of whom had previously backed the GENIUS Act. Senator Ben Ray Luján, one of the supporters, stated that the bill is crucial to prevent the president and their immediate family from exploiting public office to cash in on digital assets, describing Trump’s actions as a serious conflict of interest and a violation of public trust.

WLF has reportedly seen significant inflows and 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 that critics suggest may be an effort to mitigate scrutiny without relinquishing profit. Despite the support from Democratic senators, the COIN Act faces an uphill battle in a Republican-controlled Congress. Even if the bill were to clear both chambers, the likelihood of a presidential veto looms large. The COIN Act is part of a series of recent Democratic proposals aimed at tightening oversight of cryptocurrency activities by public officials, including the Modern Emoluments and Malfeasance Enforcement (MEME) Act.

Schiff introduced the COIN Act following reports of President Donald Trump’s growing involvement in digital assets. These include memecoins, NFTs, and the stablecoin USD1. Trump’s digital asset ventures have reportedly earned him millions. This includes alleged profits of over $57 million through decentralized finance platforms. The bill also highlights concerns surrounding a recent deal involving USD1. The Trump family reportedly agreed to a $2 billion investment deal with a UAE-linked firm. The transaction is expected to settle using the USD1 stablecoin via Binance. This raises further questions about potential conflicts of interest.

The proposed legislation arrives shortly after the Senate passed the GENIUS Act, a bill that outlines a regulatory framework for stablecoins. While the GENIUS Act limits crypto actions by lawmakers and some executive branch officials, it notably exempts the president and vice president. Schiff’s new bill aims to close that gap by applying restrictions to the highest offices in the country. The COIN Act would impose significant penalties on those found in violation. It would ban covered officials from launching, promoting, or endorsing any form of digital asset. The bill also requires disclosure of any digital asset sales exceeding $1,000. Violators could face civil fines equal to the profit gained and up to five years in prison. The legislation applies not only to the president and vice president but also to members of Congress and senior executive officials.

Just days before introducing the COIN Act, Schiff supported the GENIUS Act, which left out presidential restrictions. This has drawn attention, especially given his criticism of Trump’s crypto dealings. Democrats had initially pushed for stronger provisions but later dropped the demands to gain bipartisan support. Lawmakers continue to push for tighter ethical standards regarding public officials’ involvement in digital assets. The COIN Act seeks to reinforce accountability and prevent misuse of political power for personal financial gain.