Crypto Crackdown: Lawmakers Push to Ban Government Officials from Trading Digital Assets

Washington draws a hard line—public servants could soon be locked out of crypto markets.

New legislation targets insider advantages

The bill—dubbed the 'Public Trust in Crypto Act'—aims to prevent the revolving door between regulators and crypto ventures. No more buying the dip with classified intel.

Ethics or overreach?

While proponents argue this stops conflicts of interest, critics call it another knee-jerk reaction from bureaucrats who still think Bitcoin is 'magic internet money.' Meanwhile, hedge funds quietly stack SATs.

Closing thought: Nothing terrifies a politician quite like missing out on 100x gains—unless it's voters realizing they did.

Introducing the COIN Act

The proposed legislation, known as the COIN (Curbing Officials’ Income and Nondisclosure) Act, extends beyond just targeting the President. It encompasses the Vice President, senior executive employees, special government workers, and Congress members. If enacted, the bill WOULD prohibit these officials and their family members from issuing, supporting, or endorsing crypto assets. This ban begins six months before they take office and lasts until two years after they leave their positions.

Part of the bill’s content requires public officials to include cryptocurrency holdings in their annual financial disclosures and mandates periodic reporting on transactions involving these assets. The goal is to adapt the principles of transparency and accountability to the cryptocurrency domain.

Reactions and Justifications

Senator Schiff expressed concerns regarding ethical and legal issues due to the TRUMP family’s income from crypto assets. It was revealed that Trump earned over $57.3 million through the decentralized finance platform World Liberty Financial. Additionally, a meme coin named “Official Trump” was launched just hours before Trump took office.

Schiff stated, “Thus, I am introducing a regulation to prevent government officials, including the President and immediate family members, from financially benefiting from crypto assets. We need closer scrutiny of the President’s financial transactions and to prevent making profits from such organizations.”

Earlier this year, Ethereum$2,425’s founder, Vitalik Buterin, warned that cryptocurrencies associated with political figures possess an unlimited potential for bribery. Public Citizen, a consumer rights advocacy group, argued that Trump violated federal laws regarding gifts to government officials and filed a complaint with the authorities.

Last month, the President hosted 220 major investors of a meme coin bearing his name at a private golf club, causing significant price volatility. These events have sparked debates on whether public officials exploit crypto assets for economic gain.

The bill was crafted amid concerns of conflicts of interest for administrators using cryptocurrency in public domains. Such economic activities are under scrutiny, with experts wary about the integration of public duties with crypto financial tools’ potential risks.

This debate transcends the U.S., potentially inspiring regulatory efforts in other countries. Ethical, legal, and societal concerns surrounding the utilization of crypto assets in the public sphere have increasingly surfaced, prompting more legislative proposals.

Recent actions by U.S. lawmakers are seen as moves to limit digital finance’s influence on public administration and safeguard public trust. Whether this particular legislation will be enacted amid high-value gains and political impacts will be determined in the coming period.