In a move aimed at addressing significant concerns about the ethical implications surrounding public officials and their financial investments in cryptocurrencies, Democratic lawmakers have introduced the Curbing Officials’ Income and Nondisclosure (COIN) Act. This legislation actively seeks to prevent any U.S. public officials, including the President, from profiting off digital assets while in office and for a specified duration thereafter.
The impetus for the COIN Act arose after alarming reports indicated that former President Donald Trump garnered over $57.4 million in 2024 from his involvement with the crypto platform World Liberty Financial. Senator Adam Schiff, who introduced the bill, criticized Trump’s activities, highlighting them as an abuse of public office for personal financial gain. “We must take crucial steps to prevent the financial exploitation of digital assets by elected officials,” Schiff asserted.
The COIN Act is designed to impose strict regulations on the crypto ventures of public officials. Under the proposed legislation, individuals holding positions such as the President, Vice President, members of Congress, and other high-ranking executive officials will be prohibited from issuing or promoting digital assets—including meme coins, NFTs, and stablecoins—for a period that covers 180 days before their term and up to two years following their departure from office. Immediate family members of these officials will also fall under the scope of these restrictions.
The act aims not only to limit financial interests in digital assets but also to amend the Ethics in Government Act. This amendment would require public officials to disclose their digital asset holdings, thereby increasing transparency in financial disclosures and preventing potential conflicts of interest. To further bolster these efforts, the COIN Act mandates that any stablecoin issuer must certify on a quarterly basis that no public officials are profiting off their tokens, a requirement essential for gaining regulatory approval.
Moreover, the urgency for such regulations has been echoed by various Democratic representatives, particularly amidst ongoing criticisms of Trump’s expanding crypto interests. Representative Maxine Waters has been vocal about these concerns, accusing Trump of leveraging his influence during a private gala to benefit at the expense of investors. The introduction of the COIN Act comes amidst rising pressure on Congress to enact effective crypto governance frameworks that prioritize public integrity above personal profit.
As cryptocurrency continues to evolve, the implications of the COIN Act will be closely monitored. The Government Accountability Office is tasked with delivering a report within the next year to assess and provide recommendations for updating federal ethics laws, as Congress seeks to adapt to the emerging dynamics of the digital asset landscape.
- Key Provisions of the COIN Act include:
- Prohibition on public officials profiting from digital assets during and post-office.
- Mandatory disclosures of any digital asset holdings.
- Quarterly certifications from stablecoin issuers regarding public officials’ profits.
- Inclusion of digital asset transactions in conflict of interest considerations.
