Senate Democrats Take the Lead on New Bill to Prevent Top U.S. Officials and Their Families from Directly Benefiting from Cryptocurrencies

Senate Democrats are rolling out a new bill that would prevent top U.S. officials and their families from personally benefiting from cryptocurrencies.

The “End Crypto Corruption Act” was unveiled two days ahead of a crucial vote on legislation to regulate digital assets.

If enacted, the bill would make it illegal for a president, vice president, members of Congress, senior federal officials, and immediate family members to create, promote, own, or trade cryptocurrencies. It is one of the most overt attempts to curtail political figures’ ability to personally profit from the fast-growing digital asset industry using their influence.

“We need to restore trust in our institutions, and we need to restore trust in our elected officials,” said Senator Jeff Merkley, who introduced the bill.

“The blatant corruption on display is nearly unbelievable. Someone could build influence with the president by purchasing and trading a cryptocurrency that he personally owns and that he or his agencies have struggled to regulate. It’s an extremely corrupt scheme that threatens national security and undermines public trust in government.”

The proposed law provides for a maximum fine of $1 million and the return of any proceeds, and it would apply for the duration of the official’s service and afterward.

The initiative was also backed by Senate Majority Leader Chuck Schumer, who warned that having elected officials with "pieces of their personal fortunes tied up in these new digital tokens invites abuse.”

“We saw a lot of undue influence being solicited, potentially foreign interference.”

Though a small fraction of Congress currently holds crypto—just 13 lawmakers disclose any such holdings according to Reuters—the bill’s sweeping language could force divestitures and fundamentally alter how officials engage with digital assets.

Passive investments, such as in index funds, may be covered by an exemption, although the bill language is still being reviewed.

The bill comes amid a surge in Trump-themed coins and a move by the former president’s family to launch a stablecoin.

Recently, a stablecoin named USD1, which was introduced by the Trump family-linked company World Liberty Financial, crossed $2.1 billion in market value. The token is being marketed with imagery explicitly based on Trump.

There’s also a Trump-themed meme coin that has recently made headlines. According to reports, Trump’s associates, family, and advisors own 80% of the total supply, while the public holds 10%.

Even more controversially, this month’s gala dinner is in the pipeline, where the top 25 TRUMP meme coin holders will receive VIP access to meet the president in person. Critics argue that this opens the door to pay-to-play politics, especially since non-U.S. citizens could buy a token to gain a stake in influencing a U.S. president.

Many Republicans have remained largely silent on the meme coin and the gala, sparking concerns about bipartisan responsibility.

The “End Crypto Corruption Act” comes at a delicate moment as the U.S. Senate prepares to vote on a bipartisan bill that would regulate stablecoins, setting up a clash between lawmakers pushing for stricter rules and those seeking to stall or scuttle the effort.

The planned vote in the coming week on the bipartisan bill, which is largely focused on setting up a framework for stablecoins, follows months of lobbying by industry groups and warnings from banking trade bodies.

The House of Representatives passed a bill in December that included provisions to ban U.S. officials from holding cryptocurrencies personally.

The Senate bill, which is expected to be voted on by May 8, faces opposition from lawmakers who lean libertarian and view the proposal as an overreach of government authority.

Some lawmakers expressed concern that the bill could impinge on officials' ability to manage personal financial assets, while others focused on the implications for engaging with a rapidly evolving technology sector.

Senator Cynthia Lummis, a Republican known for her support of crypto and blockchain technology, said she was open to stronger ethical rules but warned that the current proposal might impinge on officials' constitutional rights.

"I'm happy to work on bipartisan common-ground legislation to strengthen our ethics laws and prevent corruption," Lummis said in a statement.

"But this bill appears to be unconstitutional and wouldn't stand a chance in court."

The ethics bill has drawn support from anti-corruption organizations.

"New financial products shouldn't be a vehicle for corruption," said Virginia Canter, legal director at Democracy Defenders Action.

"Congress should pass this bill to prevent conflicts of interest and foreign interference in our elections and government."

The advocacy group Public Citizen is also among the supporters of the bill.