US Senator Drops Bombshell Bill Targeting Crypto Holdings for Government Officials

Washington's latest power play could shake up crypto's political playground. A new bill aims to slam the brakes on officials' digital asset dealings—just as institutional adoption hits its stride.

Behind the political curtain

The proposed legislation would force elected officials and key government employees to disclose—and potentially divest—their cryptocurrency holdings. No more anonymous wallets or "forgetting" to report that Bitcoin windfall from 2017.

Market irony alert

Coming during a bull run where crypto salaries are becoming mainstream in tech, the bill reeks of political theater. Because nothing says "clean markets" like career politicians suddenly discovering ethics when digital assets moon.

Wall Street's old guard must be loving this—their regulated playground stays intact while crypto gets the regulatory squeeze. How convenient.

The Content of the Legislative Proposal

In his statement, Schiff emphasized that Trump’s cryptocurrency initiatives raise serious ethical, legal, and constitutional concerns regarding the use of presidential power for personal gain. “We require a much closer examination of the President’s financial dealings, and it is imperative to prevent any politician from profiting from such plans,” Schiff stated.

The bill introduces a clear ban on cryptocurrency issuance and promotional activities covering a specific period before and after officials’ terms. Just a week before unveiling this proposal, Schiff had voted in favor of the GENIUS Act, an important stablecoin law previously critiqued and halted due to Trump’s crypto interests. The GENIUS Act passed with bipartisan support in the Senate and was forwarded to the House of Representatives.

Debate Over Trump’s Cryptocurrency Connections Continues

Trump-affiliated cryptocurrency initiative World Liberty Financial (WLF) plays a significant role in the crypto market. In March, the company launched a stablecoin named USD1. Recently, this stablecoin was distributed via AirDrop to wallets involved in the sales of the initiative’s main network asset, WLFI coin. As per CoinMarketCap, USD1 holds a current market valuation of 2.2 billion dollars.

Trump’s latest financial disclosure revealed that World Liberty Financial amassed $57.35 million from coin sales in 2024. This substantial figure became a driving factor behind Schiff and some other Democrats’ concerns and legislative initiatives.

Schiff’s bill is not the first of its kind. For instance, Democratic Representative Ritchie Torres suggested a law last month aiming to prevent presidents from profiting from cryptocurrencies. However, the Democrats’ minority status in both the Senate and House complicates the advancement of such legislation. Significant political effort is necessary for these types of bills to progress toward becoming law under current conditions.