As debates over the use of cryptocurrencies in public sectors continue in the U.S., Senator Adam Schiff has introduced a new bill aimed at curbing high-ranking government officials, including former President Donald Trump and his family, from acquiring income through crypto assets. The proposal seeks to limit financial gains from cryptocurrencies and aims to establish transparent reporting requirements.
Introducing the COIN Act
The proposed legislation, known as the COIN (Curbing Officials’ Income and Nondisclosure) Act, extends beyond just targeting the President. It encompasses the Vice President, senior executive employees, special government workers, and Congress members. If enacted, the bill would prohibit these officials and their family members from issuing, supporting, or endorsing crypto assets. This ban begins six months before they take office and lasts until two years after they leave their positions.
Part of the bill’s content requires public officials to include cryptocurrency holdings in their annual financial disclosures and mandates periodic reporting on transactions involving these assets. The goal is to adapt the principles of transparency and accountability to the cryptocurrency domain.
Reactions and Justifications
Senator Schiff expressed concerns regarding ethical and legal issues due to the Trump family’s income from crypto assets. It was revealed that Trump earned over $57.3 million through the decentralized finance platform World Liberty Financial. Additionally, a meme coin named “Official Trump” was launched just hours before Trump took office.
Schiff stated, “Thus, I am introducing a regulation to prevent government officials, including the President and immediate family members, from financially benefiting from crypto assets. We need closer scrutiny of the President’s financial transactions and to prevent making profits from such organizations.”
Earlier this year, Ethereum $2,520’s founder, Vitalik Buterin, warned that cryptocurrencies associated with political figures possess an unlimited potential for bribery. Public Citizen, a consumer rights advocacy group, argued that Trump violated federal laws regarding gifts to government officials and filed a complaint with the authorities.
Last month, the President hosted 220 major investors of a meme coin bearing his name at a private golf club, causing significant price volatility. These events have sparked debates on whether public officials exploit crypto assets for economic gain.
The bill was crafted amid concerns of conflicts of interest for administrators using cryptocurrency in public domains. Such economic activities are under scrutiny, with experts wary about the integration of public duties with crypto financial tools’ potential risks.
This debate transcends the U.S., potentially inspiring regulatory efforts in other countries. Ethical, legal, and societal concerns surrounding the utilization of crypto assets in the public sphere have increasingly surfaced, prompting more legislative proposals.
Recent actions by U.S. lawmakers are seen as moves to limit digital finance’s influence on public administration and safeguard public trust. Whether this particular legislation will be enacted amid high-value gains and political impacts will be determined in the coming period.