Democratic Senators Introduce Bill to Bar Trump and Senior Officials from Creating or Promoting Crypto Assets

On May 11, 2025, a coalition of 20 Democratic Senators unveiled the “End Crypto Corruption Act of 2025,” a legislative proposal designed to prohibit senior U.S. government officials, including the President, Vice President, members of Congress, Senate-confirmed appointees, and Special Government Employees, along with their spouses and dependent children, from creating, issuing, sponsoring, or endorsing cryptocurrencies and digital assets. The bill, introduced amid heated disputes over the Senate’s stalled stablecoin regulation legislation, responds to growing concerns about potential conflicts of interest, particularly President Donald Trump’s extensive involvement in the crypto sector.

Legislative Details and Scope

The End Crypto Corruption Act aims to prevent conflicts of interest by prohibiting high-ranking officials from engaging in crypto-related activities. The bill targets figures like Trump, whose $TRUMP memecoin has drawn scrutiny, and Special Government Employees like Elon Musk, a vocal supporter of cryptocurrencies such as Dogecoin. The USD1 stablecoin, linked to the Trump family’s DeFi project World Liberty Financial (WLFI), valued at $2.1 billion as of press time, may be affected, though WLFI’s direct involvement remains uncertain. The bill’s penalties—fines based on the greater of 10% of the transaction value or profits, plus potential imprisonment—seek to deter officials from exploiting their positions for financial gain.

The proposal follows the Senate’s rejection of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act on May 8, 2025, blocked by Democrats in a 49-48 vote. Senate Democrats criticized the GENIUS Act for lacking robust anti-money laundering measures and foreign issuer oversight, fearing it could enable projects like WLFI, which is tied to a $2 billion investment deal with Abu Dhabi-based MGX and Binance. Senator Elissa Slotkin, a co-sponsor of the End Crypto Corruption Act, told Michigan Advance that the legislation seeks to prevent President Donald Trump from “profiting personally” through cryptocurrency assets. Slotkin emphasized, “Frankly, this shouldn’t be a partisan issue. Regardless of who holds the presidency, no one should be permitted to establish a marketplace that effectively funnels direct payments to the president and their family.”

Trump’s Crypto Activities Criticized

Trump’s crypto ventures have faced significant criticism. The $TRUMP memecoin, launched days before his January 2025 inauguration, surged in value after a promotion offering top holders a White House dinner, raising concerns about pay-to-play schemes. The USD1 stablecoin, associated with WLFI, has sparked fears of foreign influence due to its MGX and Binance backing, prompting Senators Elizabeth Warren, Jeff Merkley, and Richard Blumenthal to request investigations into potential violations of the U.S. Constitution’s Emoluments Clause. Blumenthal has sought records from WLFI and Fight Fight Fight LLC, the entity behind $TRUMP, to probe these connections further.

Political Outlook and Broader Implications

The United States is working to establish clear regulatory frameworks for cryptocurrencies and stablecoins, but the legislative process is facing significant challenges. Some critics argue that the opposition from Democratic Senators to the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, coupled with the introduction of the End Crypto Corruption Act of 2025, may be overly politicized and targeted at President Donald Trump, potentially undermining bipartisan efforts on stablecoin regulation. With Republicans holding majorities in both the Senate and House, the End Crypto Corruption Act faces a tough path to passage.

Nevertheless, Democratic Senators remain steadfast in their support for the bill. In the interview with Michigan Advance, Senator Elissa Slotkin stressed that while both parties share an interest in some form of cryptocurrency regulation, the End Crypto Corruption Act must take precedence. “We’ve got a more immediate crocodile closer to the boat, and that’s the president of the United States, selling his own currency and marketing his own currency and using it as a form of payment to line his pockets,” Slotkin said.