COIN Bill: US Senator Proposes Ban on Officials Endorsing or Issuing Cryptocurrencies for Personal Gain

In a move to tighten ethical loopholes and increase transparency in the digital asset space, US Senator Adam Schiff has proposed a new bill called the “Curbing Officials’ Income and Non-Disclosure (COIN) Act.” The bill’s primary goal is to prevent the president, vice president, and their immediate family members from using their public positions to profit from the issuance or endorsement of cryptocurrencies, including memecoins and related digital assets.

In response to criticism of exploiting personal images for crypto profit
The COIN Act comes amid growing controversy surrounding the growing involvement of top politicians in the cryptocurrency market, especially following recent events involving President Donald Trump. A White House dinner for TRUMP memecoin holders has caused a stir, with some suggesting the president is using his fame and power to boost the value of a token tied to his name.

The event has raised questions about the ethics and motives behind public officials participating in or profiting from the cryptocurrency market. The surge in TRUMP memecoin ahead of his inauguration, and subsequent sharp decline, has also raised concerns about transparency and investor protection.

Key takeaways from the COIN Act
The COIN Act seeks to expand the concept of “endorsement” to include the use of the name, image, or likeness of officials or family members in any marketing materials related to digital assets. Covered individuals, including the president, vice president, and their immediate families, would be prohibited from issuing, endorsing, or otherwise engaging in the promotion of tokens, NFTs, stablecoins, or any digital assets for personal financial gain.

Additionally, the bill would require state officials to report holdings of digital assets with a market value exceeding $1,000, formally placing digital assets within the scope of “financial interests” under existing federal ethics rules. This paves the way for greater oversight from regulators.

Proposed Penalties and Liability
The COIN Act provides for severe penalties for violators, with each willful violation punishable by a fine of up to $25,000. If the violation results in a total loss of $1 million or more to a U.S. citizen, the individual could face up to five years in prison.

More seriously, if there is evidence of bribery in connection with the issuance or endorsement of a digital asset, the penalty could be increased to 15 years in prison and a ban from holding any office under the U.S. government. This reflects the legislature’s commitment to upholding public ethics and preventing profiteering from political positions.

Exceptions and Limitations
While strict, the law does not prevent public officials and their relatives from investing in digital assets that are widely available to the public, as long as they do not participate in the promotion, endorsement, or issuance of tokens associated with their name or image. This provision seeks to balance the right to invest with the ethical responsibilities of public office holders.

Prospects for Passage and Potential Impact
To become law, the COIN Act needs to gain a majority in the Senate before moving to the House of Representatives for further debate and voting. Despite facing some opposition from various political factions, especially in the context of increasing support for blockchain technology by politicians, the bill has received attention from the public and those who advocate for transparency in government.

If passed, COIN could become an important tool to prevent the abuse of political power in the cryptocurrency market, thereby strengthening public trust in public institutions and enhancing integrity in the rapidly growing digital asset sector.

Conclusion
The COIN Act represents a serious step forward in efforts to reshape the relationship between politics and cryptocurrencies, ensuring that technological innovation is not misused for private gain. As the cryptocurrency market continues to expand and gain increasing attention from both institutional investors and the public, measures like COIN are necessary to establish clear ethical boundaries and protect the common good of society.