After Trump Coin Controversy, Lawmakers Push to Ban Political Crypto Endorsements

A group of Democratic senators has unveiled a new bill aimed at blocking public officials from launching or promoting cryptocurrencies — a move that appears closely tied to growing concerns

A group of Democratic senators has introduced a bill that would bar public officials from launching or promoting cryptocurrencies, in a move seemingly sparked by growing concerns over President Trump’s ties to token projects.

The “End Crypto Corruption Act of 2025,” (S. 1707), introduced on May 7, aims to prohibit current and former top-ranking federal officials — including the President, Vice President, members of Congress, Cabinet appointees, and certain executive staff — from issuing, selling, promoting, or otherwise engaging with any digital assets. The restrictions would also apply to their spouses and dependent children, remaining in effect throughout their term and for one year after.

The legislation, which permits the standard sale of assets, includes penalties for any promotional activity and is designed to prevent the abuse of public office for personal crypto gains. The proposal follows controversy over Trump-themed memecoins and a White House dinner invitation extended to the top holder of one such token, raising alarms about potential self-dealing.

Senator Elissa Slotkin, one of the bill’s co-sponsors, stated that the goal is to draw a line between political power and private gain. "The president isn't just embracing crypto—he's monetizing it," Slotkin remarked.

The bill, co-sponsored by Senators Elissa Slotkin (D-MI), Ben Cardin (D-MD), and Robert Menendez (D-NJ), among others, also includes provisions to require the administration to monitor, adjust, and report on the impact of crypto sanctions evasion by foreign entities, an aspect that has been a point of contention in broader crypto legislation.

Also caught in the spotlight is Elon Musk, who serves in a federal advisory role under the Department of Government Efficiency (Aviso). Musk recently clarified on May 5 that his office, which focuses on advising the administration on improving government efficiency, has no affiliation with the memecoin of the same name and will not utilize it in any formal capacity.

The bill arrives amid a larger partisan standoff over crypto regulation, particularly around stablecoin policy. Democrats have expressed frustration over GOP resistance to provisions related to anti-money laundering and foreign oversight in the Union Bank bill.

Despite the House vote on Friday, the Senate is expected to continue work on a separate bill, potentially leading to a stall in broader crypto legislation. The administration has voiced support for a swift passage of the stablecoin bill to prevent a vacuum in the regulatory landscape as other nations, like China, advance their own crypto frameworks.

The bill's introduction comes as the administration is juggling multiple priorities, including the looming default on U.S. debt and a potential strike by the Writers Guild of America.

As for Trump, recent reports suggest a $2 billion deal involving a Trump-associated stablecoin and a foreign investment firm, further deepening concerns over the entanglement of private financial interests with public office.

While it remains unclear how certain relationships—such as Trump's role at World Liberty Financial—would be handled under the bill, lawmakers backing the measure maintain that it's a necessary step to keep public office from becoming a launchpad for private token schemes.