California Lawmakers Target Crypto Conflicts Via COIN Act

Key Takeaways

• Senator Adam Schiff and nine Democrats introduced the COIN Act to prevent financial exploitation of digital assets by public officials, focusing on President Trump’s crypto dealings.
• The bill bans officials from issuing or endorsing cryptocurrencies, meme coins, NFTs, and stablecoins 180 days before and 2 years after office.
• Trump’s family’s reduced stake in the crypto platform WLF and related stablecoin activity has drawn scrutiny amid reports of millions in proceeds.
• California Representative Maxine Waters proposed the TRUMP in Crypto Act to further target Trump’s meme coin and crypto corruption.
• Both legislative efforts face uncertain futures due to political opposition and the potential for presidential vetoes.

Trump Crypto News Sparks New Legislative Push

Amid growing concerns over crypto conflicts of interest in Washington, California Senator Adam Schiff and nine fellow Democrats have introduced legislation aimed at curbing the potential misuse of digital assets by public officials, including the President of the United States.

Adam Schiff’s Bill

Source: U.S. Congress

Trump’s Crypto Holdings In The Spotlight

According to financial disclosures, President Donald Trump earned approximately $57.4 million through ties to World Liberty Financial (WLF), a crypto platform backed by his family. In April, the State Democracy Defenders Action organization estimated that Trump holds around $2.9 billion in digital assets, making up 40% of his total wealth.

These revelations have sparked ethical concerns, with critics arguing that Trump’s position enables him to financially benefit from unregulated digital markets.

Introducing The COIN Act

On Monday, Schiff announced the Curbing Officials’ Income and Nondisclosure (COIN) Act, which is designed to restrict how current and former public officials engage with digital assets like cryptocurrencies, stablecoins, NFTs, and meme coins.

Source: X (@SenAdamSchiff)

Prohibited Activities

The legislation would ban presidents and public officials from issuing, endorsing, or investing in digital assets from 180 days before taking office until two years after leaving office. This includes:

• Cryptocurrencies.

• Meme coins.

• NFTs.

• Payment Stablecoins.

Stablecoins In The Crosshairs

The bill’s language specifically targets payment stablecoins, such as WLF’s USD1 stablecoin, which was launched in March.

In May, an Abu Dhabi investment firm revealed plans to use USD1 in a $2 billion Binance transaction, deepening the scrutiny on WLF and its ties to the Trump family.

Trump Crypto News & WLF’s Shifting Ownership

Stake Reduction & Asset Liquidation

While the Trump family reportedly reduced their WLF stake from 75% in December to 40% by June, questions remain about the millions of dollars they’ve earned from digital asset sales.

Critics argue that such moves reinforce the need for legislation like the COIN Act to guard against corruption and preserve the integrity of public office.

The TRUMP In Crypto Act

On the same day as the COIN Act’s introduction, Rep. Maxine Waters (D-CA) proposed a companion bill in the House called the Stop Trading, Retention, and Unfair Market Payoffs (TRUMP) in Crypto Act.

This bill aims to:

• Prohibit any official crypto project bearing Trump’s name.

• Halt the promotion of meme coins tied to public figures.

• Strengthen transparency around crypto earnings for elected officials.

Waters’ announcement followed a private dinner Trump hosted for top holders of his meme coin, fueling public backlash and bipartisan concern.

FAQ

What is the COIN Act?
The COIN Act (Curbing Officials’ Income and Nondisclosure Act) is proposed legislation aimed at stopping public officials from financially exploiting digital assets like cryptocurrencies, NFTs, and stablecoins while in office and for a specified period before and after their term.

Why is this legislation targeting Donald Trump?
The legislation responds to disclosures showing President Trump’s substantial income from crypto ventures, especially his family’s involvement in the World Liberty Financial platform and its associated stablecoins, raising concerns about conflicts of interest.

Could these bills become law?
Passage faces significant hurdles. Democrats are currently in the minority, and President Trump could veto the legislation. Overriding a veto requires a two-thirds vote in both chambers, making the bills’ future uncertain.

How much of Trump’s wealth is tied to cryptocurrencies?
According to the nonprofit State Democracy Defenders Action, about 40% of Trump’s wealth—approximately $2.9 billion—is linked to digital assets.