Senator Schiff Introduces COIN Act to Ban Crypto Profits by Officials

Senator Adam Schiff has introduced the COIN Act, a legislative proposal aimed at preventing U.S. presidents and top officials from profiting off digital assets. This move comes amid concerns over the ethical implications of crypto-linked gains among high-ranking government officials. The COIN Act seeks to fortify ethical norms by barring officials from launching or promoting crypto projects during and after their tenure. Schiff cited President Donald Trump's $57 million crypto earnings as a significant ethical red flag, highlighting the need for reform and oversight in the crypto space.

Schiff's proposal specifically targets high-ranking government personnel, including the Vice President, Congress members, and senior executive employees. The law’s goal is to prohibit these figures and their families from issuing, supporting, or endorsing any cryptocurrency assets. This restriction would be active starting six months prior to taking office and would extend for two years post-tenure. The bill mandates clear reporting practices to promote transparency in public office, addressing moral and legal complications that have arisen from the involvement of government officials in cryptocurrency investments.

Vitalik Buterin, Ethereum’s co-founder, previously noted the dangers, highlighting the potential for crypto linked to politicians to serve as a conduit for bribes. In response to Trump’s activities, Public Citizen—a group focused on consumer rights—filed a legal complaint, citing infringements on federal gift regulations. Trump held an event with 220 significant investors involved with a meme coin bearing his name at his private golf estate. Such gatherings stirred notable market volatility and intensified discussions on the ethical implications of such financial interactions by public officials.

Amidst allegations of conflicts of interest, experts call for careful examination of the implications of integrating cryptocurrencies with public official roles. The intersections of public duty and private gain clearly necessitate rigorous oversight. The legislative push by U.S. lawmakers is a significant step toward minimizing digital asset impacts in governance and maintaining public confidence. The future acceptance of these measures, given their political and financial implications, remains to be seen.

Meanwhile, Senator Cynthia Lummis, who chairs the Senate Banking Committee’s digital asset subcommittee, has set an ambitious goal for the passage of two key crypto bills. Lummis expects the Digital Asset Market Clarity, or CLARITY Act, and the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, to be ready for the president’s signature by the end of the year. Speaking at the Bitcoin Policy Summit in Washington, D.C., Lummis acknowledged the challenges of gaining bipartisan support for these bills, particularly given concerns that certain individuals with family members in the administration might be advantaged by the legislation.

Lummis expressed her disappointment if the bills did not pass through Congress by 2026, emphasizing the importance of bipartisan input. She noted that while some Democrats have supported crypto bills, others have demanded that President Trump's involvement in the crypto space be addressed before any legislation is passed. Trump's own line of memecoins, his stake in World Liberty Financial, and political donations from digital asset companies’ executives have raised questions about potential conflicts of interest and insider trading.

The battle to pass these crypto bills in the House is expected to be contentious. With Republicans holding a slim majority, both the market structure and stablecoin bills would likely require some Democratic support to pass. House Republican leaders are considering a floor vote on landmark cryptocurrency legislation as early as the week of July 7. This timeline suggests a more aggressive push compared to the earlier speculation by Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, who had speculated that the GENIUS Act could be ready before Congress’ recess in August. Trump has indicated his willingness to sign the bill without any add-ons from the House if it passes quickly.

Lummis' realistic goal for the crypto bills is the close of 2025, aligning with the broader push for regulatory clarity in the crypto space. The introduction of the COIN Act and the progress of the CLARITY and GENIUS Acts reflect a growing recognition of the need for ethical guidelines and regulatory frameworks to govern the use of digital assets by public officials. As the legislative process unfolds, the focus will be on balancing innovation with the need for transparency and accountability in the crypto industry.