Nikolas Sargeant
Senator Adam Schiff and nine Democratic colleagues have introduced sweeping legislation designed to prevent presidents and other high-ranking officials from profiting through cryptocurrency ventures. The Curbing Officials' Income and Nondisclosure (COIN) Act directly responds to President Trump's substantial financial ties to the digital asset industry, including his recent disclosure of $57.4 million in income from World Liberty Financial, a crypto platform backed by his family members.
The proposed legislation would establish comprehensive restrictions on public officials' involvement with digital assets, including a prohibition on issuing, sponsoring, or endorsing cryptocurrencies, memecoins, non-fungible tokens, and stablecoins. These restrictions would apply during an official's tenure and extend to a significant cooling-off period of 180 days before taking office and two years after leaving their position.
Schiff emphasized the ethical concerns surrounding Trump's cryptocurrency dealings, stating that the president's activities raise "significant ethical, legal and constitutional concerns over his use of the office of the presidency to enrich himself and his family." The California senator positioned the legislation as necessary protection against what Democrats characterize as the financial exploitation of public office through emerging digital asset markets.
The COIN Act represents a stark contrast to recent bipartisan cryptocurrency legislation. Just last week, Democrats joined Republicans in the Senate to pass the GENIUS Act by a 68-30 vote, establishing the first regulatory framework for stablecoins and allowing private companies to issue digital dollars with federal government oversight. However, while the GENIUS Act includes language that would "prohibit any member of Congress or senior executive branch official from issuing a payment stablecoin product during their time in public service," some Democrats argued it wasn't strong enough to address broader conflicts of interest involving presidential cryptocurrency ventures.
Legislative Push From the Democrats
The COIN Act builds on recent Democratic efforts to address cryptocurrency conflicts of interest in government. Earlier this year, California Representative Sam Liccardo introduced the Modern Emoluments and Malfeasance Enforcement (MEME) Act, which specifically targets presidential memecoins and has garnered support from a dozen Democratic sponsors. The MEME Act, expected to be introduced on February 27, would similarly restrict elected officials and their families from endorsing or issuing digital assets, addressing concerns about politicians exploiting their positions to create memecoins for profit.
The legislative push reflects growing Democratic concern about Trump's controversial TRUMP token and broader cryptocurrency activities. Senator Elizabeth Warren has called Trump's memecoin ventures a "scheme" and has demanded a federal investigation. The COIN Act represents a more comprehensive approach than the MEME Act, extending restrictions beyond memecoins to include all forms of cryptocurrency endorsements and establishing extended cooling-off periods that would prevent officials from immediately capitalizing on their government service through digital asset ventures.
