Senator Schiff Introduces COIN Act to Ban Officials from Crypto Activities

On Monday, Senator Adam Schiff introduced the COIN Act, a legislative proposal aimed at restricting public officials from engaging in cryptocurrency activities. The bill seeks to prohibit high-ranking officials, including the President and their immediate family, from participating in cryptocurrency issuance, endorsement, or promotion both during and immediately following their terms. This proposal has garnered support from nine Democratic senators and reflects growing concerns about ethical challenges tied to Donald Trump’s ventures into cryptocurrency.

The COIN Act outlines a comprehensive ban for senior public officials on any cryptocurrency-related endorsements. This prohibition applies from six months before they assume office until two years after their term ends. Schiff expressed alarm over Trump’s cryptocurrency activities, which he believes present significant ethical and legal puzzles that demand scrutiny.

The link between Trump and cryptocurrencies continues to spark debate. World Liberty Financial, associated with Trump, has made headlines for launching its stablecoin, USD1, which was distributed through AirDrop. Financial disclosures indicate that World Liberty Financial garnered $57.35 million from coin sales in 2024. These figures highlight the growing impact of Trump’s cryptocurrency activities, amplifying Democratic efforts to introduce regulatory measures like the COIN Act.

This bill follows other initiatives, such as Representative Ritchie Torres’ proposal last month to prevent presidential profiteering from cryptocurrency markets. Yet, with Democrats being the minority in both chambers, advancing such legislative measures poses considerable challenges.

Key takeaways from these developments include the COIN Act targeting the disengagement of public officials from crypto activities for specified periods. Trump-related crypto ventures, including World Liberty Financial, maintain significant market influence. Democratic efforts, amidst minority status, face hurdles in legislative progression.

As political and legal dynamics around cryptocurrencies continue to evolve, the COIN Act signifies an effort to address potential conflicts of interest among public officials. Whether these measures will gain necessary traction remains to be seen amid a diversified market landscape.

A group of Democratic lawmakers has introduced the COIN Act, a legislative proposal aimed at curbing the influence of cryptocurrency in government affairs. The bill specifically targets high-ranking executive branch employees and public officials, seeking to prevent them from using their positions to gain unfair advantages in the crypto market. This move comes in response to growing concerns about the potential for corruption and conflicts of interest within the digital asset space.

The COIN Act, introduced by Senator Adam Schiff, among others, aims to block U.S. public officials from launching or promoting crypto projects during and after their terms in office. The legislation is designed to enhance transparency and prevent corruption in digital asset dealings, ensuring that public officials do not profit from their positions in the crypto market. This initiative is part of a broader effort to regulate the cryptocurrency industry and protect the integrity of government operations.

The bill was introduced following a controversial dinner involving Donald Trump, which sparked concerns about the influence of cryptocurrency in political affairs. Senator Schiff's proposal seeks to address these concerns by prohibiting politicians from profiting from crypto, thereby reducing the potential for conflicts of interest and ensuring that government officials act in the public's best interest.

The COIN Act has garnered support from various lawmakers who recognize the need for stricter regulations in the cryptocurrency industry. Senator Cynthia Lummis, for instance, has criticized aggressive reputation risk policies that have hindered the growth of American Bitcoin and digital asset businesses. She views the COIN Act as a step towards creating a more favorable regulatory environment for the industry.

The legislation is part of a broader effort to reshape cryptocurrency regulation for public officials, enhancing transparency and preventing corruption in digital asset dealings. By implementing stricter regulations, lawmakers hope to protect the integrity of government operations and ensure that public officials act in the public's best interest.

The COIN Act is expected to face scrutiny and debate as it moves through the legislative process. Lawmakers and industry stakeholders will need to work together to address concerns and ensure that the bill effectively regulates the cryptocurrency industry while promoting innovation and growth. The outcome of this legislative effort will have significant implications for the future of cryptocurrency in the United States and beyond.