On Monday, California’s Senator Adam Schiff introduced a groundbreaking piece of legislation targeting the nation’s highest offices. This proposed bill seeks to prohibit the President, Vice President, and their immediate family members from engaging in any cryptocurrency-related activities while in public office. This initiative emerges amidst increasing apprehension over the conjunction of political authority and the burgeoning digital currency sector.

Comprehensive Prohibition on Cryptocurrency Endorsements

The proposed legislation, known as the Curbing Officials’ Income and Nondisclosure (COIN) Act, lays down stringent rules. It categorically prevents incumbent Presidents and Vice Presidents from endorsing, sponsoring, or engaging with any form of cryptocurrency, including meme coins, NFTs, and stablecoins. This restriction also extends to their spouses and children. Furthermore, the bill mandates the disclosure of any digital asset sales exceeding $1,000, significantly enhancing transparency in private transactions.

Severe Penalties for Non-compliance

The COIN Act outlines explicit consequences for breaches of its mandates. Civil penalties equivalent to the profits from illicit transactions would be imposed, alongside potential prison sentences of up to five years. Such stringent repercussions underscore the seriousness with which these potential conflicts of interest are being addressed.

Connections to Former President Trump’s Crypto Activities

Senator Schiff’s motivations for championing this bill are clear. In 2024, reports indicated that former President Donald Trump amassed $58 million from various cryptocurrency ventures, predominantly through WLFI token sales. These earnings were second only to his income from hospitality ventures. Trump’s future plans reportedly include an additional $390 million token sale in 2025 and profits from a meme coin launched earlier this year.

His business endeavors also include Bitcoin mining operations and a proposed $2.3 billion Bitcoin treasury initiative under the Trump Media and Technology Group banner. The SEC approved this ambitious $2.3 billion proposal on June 13, which encompasses 85 million shares and 29 million shares linked to convertible notes.

Legislative Hurdles in a Partisan Congress

The path to enactment for this legislation is fraught with challenges. Currently, the bill enjoys the support of nine Senate Democrats, with seven having previously endorsed the GENIUS Act, which focused on stablecoin regulations but did not extend to the President. This divide highlights the complexity of crafting comprehensive crypto regulations that target specific individuals.

Given the Republican majority in the House, any proposal perceived as potentially restrictive to a President’s activities could face significant delays or even stagnation in committee discussions.