US Senator's Bill Aims to Block Officials From Profiting Off Crypto Endorsements
Terence Zimwara
Regulation
U.S. Senator Adam Schiff has introduced the “Curbing Officials’ Income and Nondisclosure (COIN) Act,” aimed at preventing the president, vice president, and their immediate families from using their positions for personal financial gain.
Act Seeks to Block Officials From Endorsing Tokens Bearing Their Names
U.S. Sen. Adam Schiff has introduced a bill barring the U.S. president, vice president and their immediate family from exploiting their positions for personal gain. Known as the “Curbing Officials’ Income and Nondisclosure (COIN) Act,” the bill defines who qualifies as an “immediate family member” and the applicable penalties for violators of the law.
The Democratic senator’s introduction of the bill comes a few weeks after President Donald Trump hosted a dinner for top holders of TRUMP memecoin. Hosting the event at the White House and using the U.S. presidential seal at the event sparked allegations that the U.S. leader was using his position to promote the memecoin bearing his last name.
Before that, critics had repeatedly slammed the launch of the memecoin just before his inauguration on Jan. 20. Immediately following its launch, the TRUMP token surged, rising to over $70 in the few days before starting a gradual decline that left many holders in the red.
To block future officials from similarly launching crypto tokens bearing their names, the COIN Act expands the definition of endorsement to include the “use of the name and likeness of an individual in any marketing materials relating to a financial interest.” The act also prohibits “covered individuals” and family members from issuing or endorsing digital assets, non-fungible tokens, memecoins and payment stablecoins.
Offenders Face Lengthy Jail Terms if Bill Passes
However, the act does not preclude the individuals from acquiring financial instruments or assets “routinely accessible to any member of the public.” Meanwhile, the act proposes penalties ranging from fines and disgorgement.
“The Attorney General may bring a civil action in any appropriate district court of the United States against any covered individual, or the immediate family member of a covered individual, who violates section 13152(a). Any covered individual, or the immediate family member of a covered individual, who knowingly violates section 13152(a) shall be subject to a civil monetary penalty of not more than $25,000 per violation,” the bill states.
For covered individuals whose violation of the section causes an aggregate loss of not less than $1,000,000 to one or more persons in the United States, they face not more than 5 years in prison. Bribery-related allegations attract sentences of up to 15 years, and convicted persons “may be disqualified from holding any office of honor, trust, or profit under the United States.”
The COIN Act also seeks to amend existing law to include cryptocurrencies and other digital assets in disclosure requirements for public officials, mandating the reporting of digital assets with a fair market value exceeding $1,000. It also clarifies that an interest in digital assets is considered a “financial interest” for the purpose of ethics regulations.
For the measure to be passed into law, a simple majority of senators must vote in favor before it moves to the House of Representatives.
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