Senator Schiff Introduces COIN Act Banning Presidential Crypto Dealings

Senator Adam Schiff (D-CA) has introduced the COIN Act, a legislative proposal aimed at prohibiting the U.S. President, Vice President, and their immediate families from engaging in cryptocurrency-related business during their terms. The bill seeks to address ethical and legal concerns surrounding the president's cryptocurrency dealings by mandating that these individuals refrain from issuing, sponsoring, or endorsing any cryptocurrency, meme coin, non-fungible token (NFT), or stablecoin. Additionally, the COIN Act 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. The legislation reflects growing concerns over the intersection of political power and the booming crypto market. The COIN Act imposes strict measures, banning the issuance, promotion, or endorsement of crypto assets—including meme coins, NFTs, and stablecoins—while mandating disclosure of transactions exceeding $1,000. Violations carry severe penalties, including fines equivalent to profits made and up to five years in prison. Schiff’s move appears to address ethical concerns, particularly citing Donald Trump’s crypto dealings, which he claims raised “significant legal and constitutional issues.”

This legislation arrives amid heightened scrutiny of political financial activities. However, the bill’s focus on crypto alone has sparked debate. Critics, including economist Peter Schiff, argue it overregulates a nascent industry while ignoring broader stock trading loopholes, a sentiment echoed by users who called for equal scrutiny on stock dealings. The timing raises eyebrows, as Schiff recently supported the bipartisan GENIUS Act, which establishes a regulatory framework for stablecoins. Some see the COIN Act as a counterbalance to that vote, though it aligns with his pro-crypto stance.

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 the president'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 the president’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 the president’s crypto dealings beyond stablecoins.

As the crypto landscape evolves, the COIN Act could set a precedent for political accountability, though its passage remains uncertain in a polarized Congress. The bill's focus on crypto alone has sparked debate, with critics arguing it overregulates a nascent industry while ignoring broader stock trading loopholes. The timing of the COIN Act's introduction, following Schiff's support for the GENIUS Act, has raised questions about his commitment to preventing political conflicts of interest in the crypto market. Despite these challenges, the COIN Act represents a significant step towards greater transparency and accountability in political financial dealings, particularly in the rapidly evolving world of cryptocurrency.