California Senator Adam Schiff and nine other Democratic lawmakers have introduced legislation to prevent what they called financial exploitation of digital assets by the US president and other public officials.In a Monday announcement, Schiff and several Democratic senators said they had introduced the Curbing Officials Income and Nondisclosure, or COIN, Act, in response to US President Donald Trumps connections to the cryptocurrency industry.
The proposed legislation followed Trumps disclosure of $57.4 million in income tied to World Liberty Financial (WLF), the crypto platform backed by members of his family.President Donald Trumps cryptocurrency dealings have raised significant ethical, legal and constitutional concerns over his use of the office of the presidency to enrich himself and his family, said Schiff.
Thats why I am introducing legislation to prevent the financial exploitation of any digital assets by public officials, including the president and the First Family.Source: Senator Adam SchiffMembers of Congress have previously attempted to push through legislation barring certain elected officials, including presidents and their families, from investing in stocks and other assets while in office.
However, Schiffs proposed bill could extend a prohibition on issuing, sponsoring or endorsing cryptocurrencies, memecoins, non-fungible tokens and stablecoins 180 days prior to and 2 years after an individuals time in office.Related: Texas Representative Gill under fire over late $500K Bitcoin disclosuresThe text of the bill specifically targeted payment stablecoins.
WFL announced its own USD1 stablecoin in March.
In May, an Abu Dhabi-based company said it intended to use the stablecoin to settle a $2 billion investment in Binance.
The presidents family has also reportedly reduced its stake in WLF to 40% in June from 75% in December, with proceeds from potential sales estimated at millions of dollars.The nonpartisan organization State Democracy Defenders Action reported in April that the presidents digital assets holdings were worth $2.9 billion, which accounted for roughly 40% of his wealth.Schiffs proposed bill is one of the first legislative efforts in the Senate to address Trumps ties to the crypto industry.
In the House of Representatives, California congresswoman Maxine Waters introduced the Stop Trading, Retention, and Unfair Market Payoffs, or TRUMP, in Crypto Act to block Trumps memecoin and stop his crypto corruption on the same day the president held a dinner to reward the top holders of his memecoin.Its unclear whether either bill will have enough support in either chamber to pass.
Even if Schiffs or Waters legislation were to pass both the House and Senate, it would likely be vetoed by Trump and require a two-thirds vote in both chambers to override it and become law.
Democrats are currently in the minority in both the House and Senate.Magazine: Trumps crypto ventures raise conflict of interest, insider trading questions