Senate Democrats Push Sweeping Ban: Public Officials Barred from Issuing or Backing Cryptocurrencies

Washington draws a hard line in the sand—while the private sector keeps building.

The new political fault line: Senate Democrats just dropped legislation that could reshape how officials interact with crypto. No more issuing, no more endorsements—just old-fashioned regulation.

Why it matters: This isn’t just about ethics. It’s a power play in the middle of a $2T market that won’t stop growing, no matter how many hearings Congress holds.

The irony? The same lawmakers pushing this ban still haven’t figured out how to audit their own spending. But sure—let’s trust them to ‘protect’ us from decentralized finance.

TLDR

• Senators moves to block crypto profits in public office.

• Trump’s $57M DeFi earnings trigger new ethics bill.

• COIN Act bans token launches by politicians.

• Lawmakers demand crypto transparency from officials.

• Stablecoins face stricter scrutiny under new bill.

Senate Democrats introduced the COIN Act to prevent U.S. presidents and public officials from launching, promoting, or profiting from crypto. The bill directly responds to President Donald Trump’s reported $57.4 million earnings from a DeFi project in 2024. Lawmakers aim to curb potential conflicts of interest and tighten ethics laws involving digital assets.

COIN Act Seeks to Limit Crypto Ties of Elected Officials

Senator Adam Schiff and nine Democratic colleagues introduced the COIN Act to address financial misconduct involving digital assets. The bill prohibits sitting officials from issuing or endorsing cryptocurrencies, memecoins, NFTs or stablecoins. It also imposes a ban that covers 180 days before and two years after holding public office.

Donald Trump and other senior administration officials have made a fortune off of crypto schemes.

Today, I'm introducing the COIN Act to put a stop to this corruption in plain sight. pic.twitter.com/8wieNSCPgC

— Adam Schiff (@SenAdamSchiff) June 23, 2025

The proposed legislation includes all high-level positions such as the president, vice president, cabinet members, and members of Congress. The measure also restricts immediate family members of these officials from engaging in similar digital asset promotions. Lawmakers believe this is essential to avoid manipulation and maintain public trust.

The bill stems from recent reports of Trump’s financial disclosures showing earnings from World Liberty Financial. The platform, reportedly led by his family, launched a USD1 stablecoin in March 2024. Lawmakers argue this MOVE created an unethical financial advantage tied to presidential influence.

Trump-Linked Crypto Earnings Prompt Congressional Response

President TRUMP reported over $57 million in income from World Liberty Financial’s decentralized finance activities. The timing of the disclosure raised questions about the use of presidential power for personal gain. The COIN Act directly responds to these concerns and aims to block similar financial ventures in the future.

The legislation prevents officials from promoting or creating tokens while holding public roles. It also expands disclosure rules to cover digital asset holdings and transactions. These new requirements aim to improve transparency in the rapidly evolving digital asset space.

The bill also treats crypto dealings as financial interests requiring recusal from relevant policy decisions. This clause enforces stronger boundaries between personal holdings and public duties. The move comes as regulatory bodies ramp up scrutiny of crypto’s role in politics.

Stablecoins and Financial Disclosure Reforms Included

The COIN Act imposes new compliance requirements on stablecoin issuers tied to public officials. Companies must certify that no public figure profits from coin issuance to gain regulatory approval. This measure aim to ensure unbiased stablecoins evaluations during the approval process.

All public officials must include crypto assets in their annual disclosures. They are also required to report periodic digital asset transactions, aligning crypto with other financial assets. The legislation strengthens accountability and clarifies the reporting obligations for public servants.

A provision requires the Government Accountability Office to propose further ethics updates within 360 days. This review will assess future digital asset challenges and suggest regulatory improvements. Lawmakers believe it is crucial to adapt ethics laws to match technological change.

The bill has the backing of advocacy groups like Public Citizen and CREW. These organizations argue that crypto opens doors to new corruption risks among public servants. They view the COIN Act as a necessary barrier to political profiteering through digital finance.