Senate Democrats have introduced a new bill aimed at preventing sitting presidents and their families from issuing, endorsing, or profiting from digital assets, including cryptocurrencies and stablecoins. The proposal, dubbed the End Crypto Corruption Act, was announced on Tuesday by Senator Jeff Merkley (D-OR), who voiced concerns about what he described as a growing risk of corruption and national security threats stemming from presidential involvement in crypto markets.
“People who wish to cultivate influence with the president can enrich him personally by buying cryptocurrency he owns or controls,” Merkley said in a press release. “This is a profoundly corrupt scheme. It endangers our national security and erodes public trust in government.” The legislation appears to be a direct response to former President Donald Trump’s recent financial activities involving stablecoins and meme coins, which have generated controversy among lawmakers.
Trump Family Crypto Activities Raise Ethical Concerns
The bill follows Senate Democrats’ sudden withdrawal of support from the previously bipartisan GENIUS Act, which was designed to create a regulatory framework for stablecoins. Two key developments reportedly influenced this shift: first, reports that the Trump family stands to earn up to $2 billion from a stablecoin deal with a Dubai-based investment group; and second, a promotional contest announced by Trump in April, offering exclusive access to the former president and the White House for top holders of a Trump-branded meme coin.
According to recent data, the meme coin contest generated around $320 million in trading fees for its issuers, fueling further allegations of unethical self-enrichment. Democrats argue that these actions exploit legal loopholes, allowing individuals with financial ties to the presidency to benefit unfairly while skirting federal ethics rules. The End Crypto Corruption Act seeks to close these gaps by banning federal officials and their immediate families from engaging in crypto ventures that may present conflicts of interest.
Bipartisan Support Emerges for Stricter Crypto Oversight
Despite initial hesitation, some Senate Democrats and Republicans have echoed calls for more robust crypto oversight. While acknowledging that the current actions by Trump and his allies are technically legal, Senator Cynthia Lummis (R-WY), a noted supporter of cryptocurrency, admitted that clearer guidelines are necessary. “Even what may appear to be ‘cringey’ with regard to meme coins, it’s legal,” Lummis said. “What we need to do is have a regulatory framework that makes this more clear, so we don’t have this Wild West scenario.”
The proposed legislation reflects growing bipartisan concern about the blurred lines between political influence and personal financial gain in the rapidly evolving digital asset space. Lawmakers from both parties now appear more open to establishing ethical standards for public officials who invest in or promote cryptocurrencies. As political figures increasingly embrace digital assets, the End Crypto Corruption Act could mark a pivotal moment in defining the role of regulation and transparency in the U.S. crypto market.
