WASHINGTON— Senator Adam Schiff (D-Calif.) has introduced new legislation aimed at barring U.S. presidents and other top officials from engaging in cryptocurrency business ventures while in office, a direct response to former President Donald Trump’s growing entanglement with digital assets, including his controversial $TRUMP memecoin.
The legislation, titled the Curbing Officials’ Income and Nondisclosure (COIN) Act, would prohibit sitting presidents, vice presidents, and senior U.S. officials from issuing, endorsing, or sponsoring digital assets such as cryptocurrencies, memecoins, stablecoins, and non-fungible tokens (NFTs).
Trump’s Memecoin Raises Red Flags
Schiff’s bill arrives in the wake of rising ethical scrutiny over Trump’s involvement in the cryptocurrency space. The former president’s endorsement of the $TRUMP memecoin, which rewards top investors with exclusive perks including a private dinner hosted by Trump himself, has alarmed watchdogs, lawmakers, and ethics experts alike.
“President Donald Trump’s cryptocurrency dealings have raised significant ethical, legal, and constitutional concerns over his use of the office of the presidency to enrich himself and his family,” Schiff said in a statement. “That’s why I am introducing legislation to prevent the financial exploitation of any digital assets by public officials, including the president and the First Family.”
Trump’s alignment with crypto markets has grown more visible, with his campaign embracing blockchain branding and courting digital asset investors. The recent memecoin dinner attended by top holders of the token further escalated concerns about personal profiteering via political clout.
Crypto-Friendly Democrats Caught in the Middle
Despite the strong language in Schiff’s bill, political dynamics in the Senate remain uncertain. The COIN Act was originally proposed as an amendment to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bipartisan bill aimed at establishing regulations for stablecoins, which are cryptocurrencies pegged to stable assets like the U.S. dollar.
Progressive Democrats, including Schiff, attempted to add language to the GENIUS Act that would restrict the president from participating in stablecoin schemes. But Republican opposition blocked the effort, and Schiff and 17 other Democrats ultimately voted in favour of the bill anyway.
Republican lawmakers, largely uninterested in curbing Trump’s crypto interests, show little sign of supporting the COIN Act as a standalone measure. Schiff’s bill may still have a path forward if another crypto-focused bill makes its way through the House, giving Democrats a new opportunity to leverage their votes for stronger conflict-of-interest safeguards.
Industry Ties Raise Eyebrows
Schiff’s position has drawn scrutiny not just for its anti-Trump stance but for the senator’s own complicated relationship with the crypto industry. His rise to the Senate was reportedly aided by nearly $10 million in crypto-backed campaign spending money aimed at defeating his more crypto-critical primary opponent, former Rep. Katie Porter (D-Calif.).
Porter had aligned herself with Sen. Elizabeth Warren (D-Mass.) in calling for strict oversight of crypto, citing its role in financial speculation and criminal activity. The Stand with Crypto Alliance, a pro-industry group, now rates Schiff as “strongly supportive” of digital assets.
That perceived closeness to the industry makes Schiff’s push for a presidential ban on crypto engagement all the more striking a potential move to draw a clear line between public duty and private profit.
Stablecoins Enter U.S. Financial Mainstream
The GENIUS Act, passed by the Senate last week, marks a significant step towards formalising digital assets within the U.S. financial system. If signed into law, it would create a legal framework for stablecoins, which are central to much of the crypto industry’s utility and promise.
But critics warn that regulating crypto without addressing political entanglements like Trump’s memecoin promotions opens the door to systemic conflicts of interest.
Whether Schiff’s COIN Act gains traction may depend on whether lawmakers can separate the broader push for innovation from the need to enforce ethical standards for public servants navigating uncharted financial territory.
For now, the bill sends a clear message: the intersection of politics and crypto is no longer niche; it’s a battleground with consequences for the integrity of public office.
