In response to ethical and legal concerns surrounding former President Donald Trump's involvement in the cryptocurrency industry, Democratic Senator Adam Schiff of California, along with nine other Democratic lawmakers, has introduced the Curbing Officials' Income and Nondisclosure (COIN) Act. The bill aims to prevent the potential financial exploitation of digital assets by presidents, vice presidents, members of Congress, and other high-ranking government officials.
Schiff stated that Trump's cryptocurrency dealings have raised concerns about the use of the presidency for personal and familial enrichment. The proposed legislation seeks to address these concerns by prohibiting covered individuals from issuing, sponsoring, or endorsing cryptocurrencies, including memecoins, non-fungible tokens (NFTs), and stablecoins, both during their time in office and for two years afterward. The bill specifically targets payment stablecoins, a type of cryptocurrency pegged to the value of a fiat currency like the US dollar.
This move follows Trump's disclosure of $57.4 million in income linked to World Liberty Financial (WLF), a crypto platform backed by his family. WLF had announced its own USD1 stablecoin earlier this year. In May, an Abu Dhabi-based company revealed plans to utilize this stablecoin to settle a $2 billion investment in Binance. Recent reports also indicate that the Trump family has reduced its stake in WLF from 75% to 40% in June, potentially yielding millions of dollars in proceeds.
The COIN Act is not the first attempt to regulate the financial activities of elected officials concerning digital assets. Previous legislative efforts have sought to restrict members of Congress and their families from investing in stocks and other assets while holding office. Schiff's bill expands upon these efforts by specifically targeting the cryptocurrency sector and extending the restrictions to the president and vice president.
The introduction of the COIN Act coincides with the Senate's recent approval of the GENIUS Act, a bill focused on establishing a regulatory framework for stablecoins. While the GENIUS Act includes provisions to prevent members of Congress and their families from profiting from stablecoins, it does not extend this prohibition to the president and their family. This omission has drawn criticism, particularly in light of Trump's continued earnings from crypto ventures.
The GENIUS Act, which passed the Senate with bipartisan support, aims to provide clarity and consumer protection for stablecoins. However, some senators expressed concerns that the bill, in its current form, does not adequately address potential conflicts of interest related to the president's involvement in the crypto industry. Senator Angela Alsobrooks, a Democrat and co-sponsor of the GENIUS Act, acknowledged the bipartisan effort to bring regulation to the space.
The COIN Act and the recent discussions surrounding the GENIUS Act highlight the growing attention being paid to the intersection of cryptocurrency and government ethics. As digital assets become increasingly integrated into the financial system, lawmakers are grappling with the need to establish clear rules and guidelines to prevent potential conflicts of interest and ensure the integrity of public office.
