Senator Adam Schiff Targets Trump’s Crypto Empire with COIN Act Crackdown

Democratic Senator Adam Schiff has introduced a sweeping ethics bill targeting cryptocurrency endorsements and ownership by high-ranking federal officials. The proposal, titled the Curbing Officials’ Income and Nondisclosure (COIN) Act, would prohibit presidents, vice presidents, cabinet members, members of Congress, and their immediate family members from issuing, promoting, or financially benefiting from any digital assets, including cryptocurrencies, NFTs, memecoins, and stablecoins starting 180 days before assuming office and lasting two years after leaving. The bill imposes civil fines and allows for prison sentences of up to five years for violators.

The timing of the COIN Act is no coincidence. It follows a series of ethically contentious and financially significant ventures linked to President Donald Trump, which have reignited bipartisan concerns about crypto-enabled political profiteering. The most controversial of these is the $TRUMP memecoin, launched in January 2025.

In May 2025, concerns reached a flashpoint when President Trump hosted a private gala dinner exclusively for the top 220 $TRUMP memecoin holders. Public blockchain data shows those wallets collectively purchased over $148 million worth of tokens in the days leading up to the event. The gathering granted direct access to the president and included wallets tied to both U.S. and foreign entities, raising bipartisan alarm among legal experts about potential pay-to-play dynamics and foreign influence.

Compounding the controversy is Trump’s deeper involvement in a stablecoin venture through World Liberty Financial, a crypto firm reportedly co-founded with his sons. The Trump family holds an ownership stake in the company and receives a share of revenue from its token activity, including the issuance of a USD-backed stablecoin known as USD1.

Watchdogs have sounded alarms about an erosion of regulatory safeguards under the current administration. Since taking office, Trump’s team has pared down enforcement units at both the SEC and DOJ, most notably dissolving the SEC’s Crypto Assets and Cyber Unit and dismantling the DOJ’s National Cryptocurrency Enforcement Team.

The COIN Act is not emerging in isolation. In the House, Rep. Maxine Waters introduced the Stop TRUMP in Crypto Act, which mirrors the Senate bill’s restrictions on crypto involvement by senior officials. Meanwhile, Schiff and several Democratic colleagues, including those who voted for the GENIUS Act, have faced criticism from members of their own party for not including anti-corruption measures in the stablecoin legislation.

While the GENIUS Act aims to regulate stablecoin issuers and facilitate institutional adoption, it does not explicitly restrict personal crypto holdings or promotional activities by public officials. Senator Elizabeth Warren, a long-time skeptic of unregulated crypto markets, blasted the measure for paving a superhighway for Donald Trump’s corruption.

Warren’s criticism echoes broader concerns that Trump’s entanglement in digital assets could present a national security risk. With foreign investors among the top holders of $TRUMP, analysts worry that U.S. policy decisions could become vulnerable to financial influence from abroad. Several legal scholars argue that the president’s immunity from criminal prosecution under federal ethics statutes presents a dangerous loophole, one the COIN Act aims to close, at least prospectively.

Despite strong public scrutiny, the COIN Act’s chances remain slim. Republicans hold the majority in both chambers, reducing the likelihood of advancement this session. Moreover, a veto by President Trump seems probable, and any override would need a daunting two-thirds vote in both the House and the Senate, an unlikely path in today’s political landscape.

Senator Schiff and his allies contend that the COIN Act delivers a clear ethical message. In public remarks, he urged the need for stronger guardrails to tackle conflicts of interest tied to digital assets. Schiff described the legislation as a vital step to preserve public trust and uphold accountability as cryptocurrencies become increasingly intertwined with policymaking.

As cryptocurrency becomes further enmeshed with mainstream politics, and as digital asset wealth accelerates, the lines between public office and private enrichment are increasingly under scrutiny. Whether the COIN Act passes or not, it may have already served its purpose: placing political crypto corruption under a spotlight at a moment when the stakes, for markets and for democracy, have never been higher.