Senate Democrats are taking the lead on a new bill to prevent top U.S. officials and their families from directly benefiting from cryptocurrencies. The “End Crypto Corruption Act” bill was introduced two days before 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 curb political figures’ ability to profit from the fast-growing digital asset industry using their influence.
According to a press release, Senator Jeff Merkley introduced the bill, stating that it aims to “restore trust among the states and in Congress” and address the “profoundly corrupt behavior” currently taking place.
Mr. Merkley stated that it is almost unbelievable that someone could build influence with the president by purchasing and trading a cryptocurrency he owns, which he or his agencies have struggled to regulate. He described this as an extremely corrupt scheme that jeopardizes national security and undermines public trust in government.
Under the proposed law, flaunting the rules could result in fines as high as $1 million, and the offending party would also have to return any proceeds. It would be in effect for the official’s time in office and afterward.
Senate Majority Leader Chuck Schumer also backed the bill. He cautioned that elected officials with parts of their reputation tied up in digital tokens could undermine democracy by soliciting undue influence and potentially foreign interference.
Though just a small fraction of Congress currently holds crypto, Reuters reports that just 13 lawmakers disclose any such holdings; the bill’s sweeping language could force divestitures and reshape how officials engage with digital assets.
Passive investments such as index funds may be exempted, though bill language remains under review.
Bill targets Donald Trump’s growing influence in the crypto market
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 waves. According to reports, Trump’s associates, family, and advisors own 80% of the total supply, with the public only holding 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, particularly as non-U.S. citizens could buy a token that gives them a stake in the influence of a U.S. president.
Many Republicans have been silent on the meme coin and the gala, prompting concerns about bipartisan responsibility.
Senators clash over law and stablecoin regulation push
The “End Crypto Corruption Act” comes at a delicate moment. The U.S. Senate is set to vote on a bipartisan bill that would regulate stablecoins as if they were USD1 coins. That vote is set for May 8, and the ethics bill could either increase support for stricter rules — or potentially set progress back.
Some lawmakers, particularly those who lean libertarian, are expressing concern. They contend that public officials, like private citizens, should be entitled to oversee personal financial assets. Senator Cynthia Lummis said she was open to stronger ethical rules but warned that the current proposal might constitutionally encroach on them.
Yet, the ethics bill has drawn strong backing from anti-corruption organizations. Virginia Canter of Democracy Defenders Action supported the legislation, saying, “New financial products like stablecoins should not be a vehicle for corruption.” The advocacy group Public Citizen also supports the bill.
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