Senator Schiff Introduces COIN Act to Ban Presidential Crypto Activities

Senator Adam Schiff introduced the COIN Act, which aims to prohibit the president, vice president, and their families from engaging in cryptocurrency-related activities while in office. The bill proposes civil fines and up to five years in prison for violations. Schiff's recent actions, however, reveal a contradictory stance. Just last week, he voted in favor of the GENIUS Act, which establishes a framework for stablecoin issuance and trading but notably exempts the president and vice president from conflict of interest requirements.

The COIN Act, introduced by Schiff, seeks to address ethical and legal concerns surrounding the president's cryptocurrency dealings. It mandates that the president, vice president, and their immediate family members refrain from issuing, sponsoring, or endorsing any cryptocurrency, meme coin, NFT, or stablecoin while in office. Additionally, it requires these individuals to report the sale of any digital asset worth more than $1,000. Violations of these rules would result in civil fines equal to the amount of profit and up to five years in prison.

Schiff's statement underscores the need for greater scrutiny of the president's financial dealings and the prevention of politicians from profiting off such schemes. However, his recent vote in favor of the GENIUS Act, which does not include language preventing the president from engaging in stablecoin ventures, raises questions about his commitment to this cause. The GENIUS Act, which Schiff supported, establishes a framework for stablecoin issuance and trading but exempts the president and vice president from conflict of interest requirements.

Stablecoins have become a significant component of Trump's cryptocurrency empire. Earlier this year, World Liberty Financial introduced its own stablecoin, USD1. In May, the Trump family announced a deal with a UAE-linked investment firm to transfer a $2 billion investment into Binance using USD1 as a settlement layer. Schiff's video specifically highlights Trump’s stablecoin venture as a central piece of the “lucrative graft going on in the White House.”

Schiff's announcement on social media was met with skepticism and disbelief from many users, who questioned the sincerity of his efforts given his recent vote in favor of the GENIUS Act. Critics argue that Schiff's new bill is unlikely to pass, especially with Republicans retaining control of Congress. Nine Senate Democrats joined Schiff in cosponsoring the COIN Act, with seven of them having voted in favor of the GENIUS Act just last week.

Since Trump's return to office, several Democrats have introduced legislation aimed at obligating the president to divest from his numerous crypto ventures. These efforts include the MEME Act and the Stop TRUMP in Crypto Act, neither of which is likely to pass while Republicans retain control of Congress. There is also an ongoing inquiry into Trump’s crypto ventures by the Senate Permanent Subcommittee on Investigations. The absence of presidential conflict of interest language in the GENIUS Act could impact the chances of market structure bills passing in both chambers of Congress, as these bills would establish a legal framework for the digital assets industry and implicate the rest of Trump’s crypto dealings beyond stablecoins.