California Senator Adam Schiff, along with nine additional Democratic legislators, has put forth a bill aimed at preventing what they refer to as “financial exploitation of digital assets” by the U.S. president and other public officials.
In an announcement made on Monday, Schiff and a group of Democratic senators declared the introduction of the Curbing Officials’ Income and Nondisclosure, or COIN, Act, as a response to U.S. President Donald Trump’s affiliations with the cryptocurrency sector. The suggested legislation followed Trump’s announcement of $57.4 million in earnings associated with World Liberty Financial (WLF), the cryptocurrency platform supported by members of his family.
“President Donald Trump’s cryptocurrency transactions have raised considerable ethical, legal, and constitutional issues regarding his use of the presidential office for personal enrichment for himself and his family,” stated Schiff. “That’s why I am putting forth legislation to prevent the financial exploitation of any digital assets by public officials, encompassing the president and the First Family.”
Previously, members of Congress have sought to pass legislation prohibiting certain elected officials, including presidents and their families, from investing in stocks and other assets while in office. However, Schiff’s proposed bill could broaden this ban to include issuing, sponsoring, or endorsing cryptocurrencies, memecoins, non-fungible tokens, and stablecoins “180 days before and 2 years after” an individual’s service period in office.
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The text of the bill specifically focused on payment stablecoins. WLF introduced its own USD1 stablecoin in March.
In May, a company based in Abu Dhabi expressed its intent to utilize the stablecoin to finalize a $2 billion investment in Binance. Reports suggest that the president’s family has also decreased its stake in WLF from 75% in December to 40% in June, with potential sale proceeds projected to be worth millions of dollars.
The nonpartisan group State Democracy Defenders Action reported in April that the president’s digital asset holdings were valued at $2.9 billion, which comprised approximately 40% of his total wealth.
Anti-corruption initiatives in Congress
Schiff’s proposed bill represents one of the initial efforts in the Senate to confront Trump’s connections to the cryptocurrency landscape. Concurrently, in the House of Representatives, California congresswoman Maxine Waters introduced the Stop Trading, Retention, and Unfair Market Payoffs, or TRUMP, in Crypto Act “to thwart Trump’s memecoin and halt his cryptocurrency corruption” on the same day that the president hosted a dinner to recognize the leading holders of his memecoin.
It remains uncertain whether either bill will garner sufficient backing in either chamber to pass. Even if either Schiff’s or Waters’ legislation were to get through both the House and the Senate, it would probably face a veto from Trump and necessitate a two-thirds majority in both chambers to override it and become law. Currently, Democrats hold the minority position in both the House and Senate.
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