Senate Democrats Introduce Bill to Bar Sitting Presidents, Lawmakers, and Their Families from Holding Cryptocurrency

Senators from the Democratic party in the Senate have introduced legislation that would bar the president, lawmakers, and their families from issuing, endorsing, or holding cryptocurrency.

The bill, named the End Crypto Corruption Act, is designed to prevent elected officials from personally profiting from digital assets while also shaping policy. It was announced on May 6.

The legislation comes just days before the Senate is set to vote on the GENIUS Act, a crucial stablecoin regulatory framework that could reshape how digital assets are governed in the U.S.

The timing has drawn attention due to the new cryptocurrency, USD1, which is linked to President Donald Trump’s family and recently surpassed $2.1 billion in market capitalization.

According to Axios, Democratic leaders view the new legislation as a necessary firewall against potential conflicts of interest.

The End Crypto Corruption Act would prevent the President, Vice President, senior executive officials, members of Congress, and their immediate family members from issuing or endorsing any cryptocurrency, or benefiting financially from its issuance.

Any violation would be met with penalties including fines of up to $1 million and disgorgement of gains.

Senator Jeff Merkley (D-OR), who introduced the bill, framed it as a response to what he called “profoundly corrupt” schemes allowing powerful officials to profit from crypto speculation.

“Currently, people who wish to cultivate influence with the president can enrich him personally by buying cryptocurrency he owns or controls. This is a profoundly corrupt scheme. It endangers our national security and erodes public trust in government,” said Merkley.

The senator added that they should end this corruption immediately.

Senator Merkley’s office stated that the bill has the support of Public Citizen and that it is part of a broader effort by Democrats to address concerns over conflicts of interest in a bipartisan fashion.

The legislation also follows warnings from Democratic leadership regarding the threat to democratic institutions posed by the ability of individuals to buy tokens linked to sitting officials.

Earlier this year, Senate Majority Leader Chuck Schumer (D-NY) expressed worries about the implications of such tokens and urged swift action to counter them.

The initiative is a direct response to Trump’s involvement in the crypto sector. USD1’s market capitalization expanded rapidly after its launch, aided by promotional campaigns.

Those campaigns were largely focused on Trump’s brand and included merchandise sales and social media promotions by Trump family members.

World Liberty Financial, the issuer of USD1, structured the token to channel hundreds of millions of dollars in revenue towards a Trump-linked holding entity.

This structure raised concerns among some legal experts regarding potential conflicts of interest.

The move comes amid broader attention on conflict-of-interest issues, particularly with the upcoming vote on the GENIUS Act, which aims to create a federal framework for stablecoins.

The bipartisan GENIUS Act, which stands for Growing Economic and National Interest Savings Act, has drawn support from both industry and lawmakers.

However, its passage has been slow, with some lawmakers expressing concern over the bill’s breadth and others focusing on specific issues like pay-to-play opportunities.

According to reports, the Trump family, advisors, and other insiders hold 80% of the total supply of TRUMP, with just 10% in circulation to the public.

The TRUMP memecoin gala dinner, set for this month, will grant VIP access to the president to the top 25 holders of TRUMP tokens.

While several members within Trump’s own party have voiced support for the initiative, few have commented openly on the ethics of the event, which is likely to be attended by billionaires from around the world.

Those TRUMP memecoin whales will be able to mingle with the president and his family, despite non-US citizens not being allowed to vote in US elections.

According to reports, the president’s son, Eric Trump, has been actively promoting the TRUMP token to a Chinese audience.

The move comes as China’s new ambassador to the US was appointed this week.

The broad language of the End Crypto Corruption Act, which would ban the president, vice president, members of Congress, and their immediate families from holding any cryptocurrencies, has drawn attention.

It remains to be seen if the ethics bill will advance independently or be attached to pending legislation.

However, the controversy over USD1’s rapid rise and the TRUMP memecoin gala dinner have pushed conflict-of-interest concerns into the spotlight as digital asset regulation approaches a critical juncture.