Democrats Target Political Crypto Activity with Stop TRUMP in Crypto Act

A new bill introduced by House Democrats seeks to ban key U.S. government officials from issuing or holding cryptocurrencies. The legislation, led by Representative Maxine Waters, directly targets President Trump's growing crypto activities.

House Democrats have introduced a new bill that would ban key U.S. government officials from issuing, holding, or engaging with cryptocurrencies.

The legislation, unveiled on Wednesday, is titled the Stop TRUMP in Crypto Act and is a last-ditch effort by Democrats to restrict digital asset involvement by President Donald Trump and his family members.

It comes just hours before a private dinner in Florida, where Trump is expected to meet with top holders of his meme coin.

However, the bill is likely to face difficulties in the House of Representatives, given the lack of Republican support and the approaching presidential election, which could stall any legislative action.

Democrats Target Political Crypto Activity

Led by Representative Maxine Waters, the bill aims to prohibit the president, vice president, and members of Congress from engaging in crypto activities.

This includes holding, trading, or promoting any digital tokens, coins, or related products. The restrictions would also apply to their immediate family members, such as spouses and children.

Lawmakers are targeting the growing overlap between politics and crypto profits. They expressed concerns over undisclosed crypto holdings enabling political manipulation or foreign influence.

The bill aims to close legal gaps that permit asset ownership while in power and spins off of these assets by family members.

This measure comes amid increasing scrutiny of Trump’s involvement in crypto ventures. His family has reportedly backed several token launches and investments in crypto startups.

Recently, Melania Trump participated in the launch of her own limited-edition NFT collection, which sold out within hours.

These activities have raised ethical questions about the boundaries between private financial interests and public officials’ duties.

The bill’s objective is to shield U.S. public policy from being influenced by personal crypto ventures and ensure that political decisions are made in the best interest of the nation.

Private Trump Crypto Dinner

The bill’s introduction coincides with a private event hosted by Trump and attended by key backers of his meme coin.

Democrats expressed fears that this gathering could allow Trump’s financial contributors to gain undue political influence.

The dinner is expected to include foreign participants, some of whom are currently under investigation for financial misconduct.

Among the known attendees is Justin Sun, the billionaire founder of TRON and a notorious figure in crypto. Sun is being sued by the SEC for allegedly engaging in market manipulation to profit from the sale of TRON tokens to U.S. investors.

Earlier this year, Sun made a donation of $20 million to Trump’s campaign fund and invested an additional $2.5 million in a new Trump-branded token.

In total, Sun’s investments in Trump’s ventures are estimated to exceed $22 million.

Democrats highlighted this instance as a prime example of how burgeoning crypto wealth could be used to distort political access. They pointed out that such meetings circumvent U.S. campaign finance laws, which impose limits on monetary contributions to political campaigns.

The bill seeks to prevent this abuse by placing a ban on the promotion of digital assets or the receipt of any reward in digital tokens for political activities.

It also aims to restrict officials and their families from trading any digital assets based on non-public government information, aiming to close potential loopholes around insider trading using crypto.

Legal Provisions Target Family and Business Interests

The bill would prevent the president and members of his family from promoting, selling, or otherwise profiting from any digital assets while they are in office.

This broad ban covers all forms of involvement, including the issuance, trade, mining, or endorsement of crypto products.

The legislation would also restrict the president’s family members from holding any ‘substantial interest’ in entities that are engaged in crypto-related activities.

This provision is intended to apply to any company, partnership, trust, or other enterprise that may be directly or indirectly controlled by the president’s family members.

Additionally, the bill would prohibit the president, vice president, members of Congress, and their immediate family members from engaging in the trade or investment of any digital assets.

This measure is designed to close potential loopholes around insider trading using crypto and ensure a fairer regulatory approach across the political spectrum.

Although the bill does not explicitly name any political party, it was drafted in response to Trump’s recent initiatives in the crypto sector.

Since the beginning of 2023, Melania Trump and the Trump children have become increasingly involved in token launches and investments in blockchain projects.

Lawmakers expressed concerns that such involvement could erode public trust in the administration’s regulatory integrity, especially given the rapid growth of the crypto industry and the increasing interest of politicians in this domain.

Bill Faces Partisan Hurdles in Congress

The Stop TRUMP in Crypto Act has been supported by 14 Democratic lawmakers on the House Financial Services Committee.

However, it has yet to attract any Republican co-sponsors, suggesting a challenging path ahead for bipartisan approval.

Earlier this year, Democratic