Senate Democrats Target Crypto Conflicts With New Ban on Lawmaker Holdings

Senate Democrats introduced new legislation on May 6 aimed at preventing elected officials and their families from profiting off cryptocurrency while in office. The bill , titled the End Crypto Corruption Act, would ban the President, Vice President, senior executive officials, members of Congress, and their immediate families from issuing, promoting, or holding financial stakes in any cryptocurrency project. Those who violate the proposed law could face penalties of up to $1 million and forced return of profits. A Response to Trump-Linked Token and Policy Tensions The legislation comes amid growing concerns over a Trump-affiliated stablecoin, USD1, which recently crossed a $2.1 billion market cap. That surge has alarmed some lawmakers, especially as Congress prepares to vote on the GENIUS Act, a broader bill that could reshape U.S. stablecoin regulation. Senator Jeff Merkley (D-OR), who introduced the new bill, didn’t hold back in his criticism. “This is a profoundly corrupt scheme,” Merkley said. “It endangers our national security and erodes public trust in government. Let’s end this corruption immediately.” According to Merkley, the current lack of restrictions allows insiders to profit directly from policy outcomes they influence — a potential conflict of interest that he believes must be addressed before regulatory frameworks are finalized. Schumer and Party Leaders Back Crackdown Senate Majority Leader Chuck Schumer echoed Merkley’s concerns, warning that tokens tied to elected officials can distort democratic processes. “If people can enrich politicians by buying their tokens, it threatens the very foundation of public service,” he said. With crypto rapidly gaining mainstream acceptance, Democratic lawmakers argue that financial entanglements between policy and personal profit must be clearly separated — especially at the top levels of government. Reporter at Coindoo Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets. Related stories Next article !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod?n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window,document,'script','https://connect.facebook.net/en_US/fbevents.js');fbq('init','1188189499475368');fbq('track','PageView'); Source: https://coindoo.com/senate-democrats-target-crypto-conflicts-with-new-ban-on-lawmaker-holdings/