tl;dr
Senate Democrats introduced the End Crypto Corruption Act to prohibit sitting presidents, lawmakers, and their families from issuing, endorsing, or financially benefiting from cryptocurrencies, aiming to prevent conflicts of interest amid digital asset policymaking. The bill targets President Trump'...
Senate Democrats have introduced the End Crypto Corruption Act, aiming to prohibit sitting presidents, lawmakers, and their families from issuing, endorsing, or profiting from cryptocurrencies to prevent conflicts of interest amid ongoing controversies surrounding President Trump’s memecoin ventures.
This legislation directly targets President Trump’s involvement with the USD1 stablecoin and TRUMP memecoin, both of which have seen rapid market value growth and are tied to Trump’s family and brand. The bill imposes fines of up to $1 million and requires disgorgement of any gains for violations, reflecting serious consequences for breaches.
Introduced just days before a Senate vote on the GENIUS Act—a pivotal stablecoin regulatory framework—the End Crypto Corruption Act adds complexity to the crypto regulation debate. Senator Jeff Merkley described the bill as a necessary response to “profoundly corrupt” schemes that allow powerful officials to benefit personally from crypto speculation, which he warns endangers national security and public trust in government.
Senate Majority Leader Chuck Schumer emphasized that token ownership linked to sitting officials undermines democratic institutions. The bill would ban top officials, including the President, Vice President, senior executives, members of Congress, and their immediate families from issuing or endorsing cryptocurrencies or financially benefiting from them.
The controversy stems largely from the USD1 stablecoin, which recently surpassed $2.1 billion in market capitalization and whose revenues funnel into a Trump-associated holding entity. Additionally, an upcoming gala dinner granting VIP access to the president for top TRUMP memecoin holders has sparked ethical concerns due to significant holdings by Trump insiders and the inclusion of non-US citizens.
While some lawmakers raise constitutional questions and debate evolving ethics standards amid cryptocurrency’s growing financial role, others back the bill. Libertarian voices caution against overregulating private financial activities, whereas advocacy groups highlight the importance of preventing corruption through emerging financial products.
The End Crypto Corruption Act’s introduction ahead of the GENIUS Act vote has fueled uncertainty in digital asset regulation. The ethical debate around USD1 and the TRUMP memecoin gala spotlights conflict-of-interest risks as Congress confronts critical decisions on the future governance of cryptocurrencies.