Key facts
- Senator Kirsten Gillibrand proposed a ban on elected officials and the US president from issuing or sponsoring their own digital assets.
- The proposal aims to prevent self-dealing and conflicts of interest related to memecoins.
- The restriction would include the president and their spouse.
- The proposal is linked to ongoing negotiations for the Digital Asset Market Clarity (CLARITY) Act.
- President Trump reported earning approximately $1.4 billion from crypto ventures during his first year in office.
Senator Kirsten Gillibrand has proposed a ban that would prevent elected officials, including the US president and their spouses, from issuing or sponsoring their own digital assets. The New York lawmaker cited the memecoins issued by President Donald Trump and First Lady Melania Trump as a primary concern, arguing that such actions constitute self-dealing and could undermine consumer protections and financial integrity.
Gillibrand, who is involved in negotiations for the Digital Asset Market Clarity (CLARITY) Act, stated that this commonsense requirement should garner bipartisan support. She indicated that ethics concerns, particularly the potential for elected officials to profit from insider status in the digital asset industry, have caused delays in the bill's progress. Previously, provisions specifically targeting Trump's crypto dealings, including his memecoin Official Trump (TRUMP), were removed from the GENIUS Act, with Gillibrand noting that addressing all of Trump's ethical issues would make the bill excessively long.
The report highlights that Trump himself reported earning approximately $1.4 billion from crypto ventures during his first year in office, a period when he held influence over digital asset legislation. Trump has defended his financial gains, stating there was "nothing illegal" or "wrong" with profiting from his investments while president.