On Monday, US Senator Adam Schiff tabled a legislative proposal aimed at restricting public officials from participating in cryptocurrency activities. Known as the COIN Act, this bill seeks to bar high-ranking officials, including the President and their immediate family, from engaging in cryptocurrency issuance, endorsement, or promotion both during and immediately following their terms. The proposal reflects growing concerns about ethical challenges tied to former President Donald Trump’s ventures into cryptocurrency, securing support from nine Democratic senators.
What Does the COIN Act Propose?
The COIN Act outlines a blanket 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, in his remarks, expressed alarm over Trump’s cryptocurrency activities, which he believes present significant ethical and legal puzzles that demand scrutiny.
How Is Trump Connected to Cryptocurrency?
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. As per CoinMarketCap, this digital asset has a market worth of $2.2 billion, showcasing the initiative’s substantial presence in the crypto market.
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 targets 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.
