Senator Adam Schiff from the Democratic Party has recently unveiled a proposed legislation known as the COIN Act, which seeks to prevent U.S. Presidents and their families from promoting or engaging in cryptocurrency-related businesses. This initiative raises questions about the motivations behind the bill and its potential implications for former President Donald Trump.
### Overview of the COIN Act
The full title of the legislation introduced by Schiff is the Curbing Officials’ Income and Nondisclosure Act. While the bill is not specifically designed to target Trump’s cryptocurrency activities, it prohibits all sitting presidents, vice presidents, and their immediate relatives—including siblings, spouses, and children—from leveraging their official positions to engage in the cryptocurrency market and other financial sectors. Beyond cryptocurrencies, the act also regulates endorsements and the issuance of securities, commodities, and futures. It effectively prevents high-ranking officials and their families from promoting cryptocurrency projects or other financial assets and from using their names or images to endorse such ventures. Additionally, the legislation restricts the issuance and sponsorship of various financial assets. However, the COIN Act does not bar presidents and their families from buying, possessing, or transferring cryptocurrencies. The assets owned by senior officials are still subject to disclosure requirements similar to other financial holdings. Violators of this legislation face penalties, including the possibility of forfeiting illegal gains to the U.S. Treasury. If a violation results in losses exceeding $1,000,000 to citizens or involves bribery, criminal charges may also be pursued. As expected, the act also prohibits insider trading and fraudulent activities.
### Previous Attempts at Regulation
Democrats have made previous attempts to establish similar regulations. In the spring of 2025, they sought to incorporate provisions into the Genius Act aimed at disallowing Trump from participating in the cryptocurrency market. However, their efforts to amend this bill were unsuccessful, prompting the introduction of a new, more focused act addressing the relationships between top officials and the crypto industry.
### Trump’s Expanding Crypto Ventures
The COIN Act poses a significant threat to Trump and his family’s financial interests, as they are deeply involved in several cryptocurrency initiatives. In a recent video posted on X, Schiff explicitly criticized the financial gains Trump and other senior officials have accrued through cryptocurrency enterprises. He stated, “Today, I’m introducing the COIN Act to put a stop to this corruption in plain sight.” Schiff highlighted that Trump’s recent financial disclosures revealed substantial profits from selling merchandise featuring his name and likeness, including a branded Bible. However, he emphasized that the most significant income source for Trump and his family stems from what he described as a “cryptocurrency scheme.” This scheme includes the Official Trump memecoin, which does not require disclosures since it was launched before Trump’s inauguration. Additionally, Schiff pointed out the stablecoin USD1, created by World Liberty Finance, a firm closely affiliated with Trump and his sons, Donald and Eric. Through his connection with World Liberty Finance, Trump reportedly earned $57 million in the first quarter of 2025. The COIN Act would jeopardize these operations, instituting a ban on crypto-related activities from 180 days before the term and extending two years after the term ends. Consequently, proceeds from the Official Trump and Melania memecoins, as well as the Trump family’s role in World Liberty Finance, would be considered illegal under the new regulations. Furthermore, in January 2025, Trump Media and Technology Group, the parent company for Truth Social, announced plans to invest $250 million in cryptocurrencies via a new platform called Truth.Fi. Eric Trump serves as the chief strategic officer for a new mining venture named American Bitcoin, which is set to go public, with 98% of the company owned by Eric Trump and Donald Trump Jr.
### Prospects for the COIN Act
Despite earlier omissions regarding restrictions on senior officials’ crypto business dealings in the GENIUS Act, Schiff has shown his support for the legislation. This indicates that while he is concerned about the potential conflicts of interest involving Trump, he does not intend to obstruct innovation in the cryptocurrency sector within the U.S. As of now, the COIN Act has garnered backing from nine Senate Democrats. However, it remains uncertain whether this proposal will succeed, especially given the lack of interest from Republicans in limiting Trump’s crypto activities, which led to previous amendments being rejected. Ultimately, the future of this pivotal legislation will depend on the political landscape and the ongoing discussions surrounding it.
