Senate Democrats have introduced a new bill aimed at prohibiting federal officials and their families from issuing digital assets. This move comes after they withdrew support for the Senate’s initial stablecoin regulatory bill. The legislation, known as the End Crypto Corruption Act, is specifically targeted at preventing figures like Donald Trump and his family from engaging in activities involving stablecoins and meme coins.
Senator Jeff Merkley (D-OR), who introduced the bill, stated in a press release, “Currently, people who wish to cultivate influence with the president can enrich him personally by buying cryptocurrency he owns or controls. This is a profoundly corrupt scheme. It endangers our national security and erodes public trust in government. Let’s end this corruption immediately.”
This action follows concerns within the Democratic party that the GENIUS Act, which previously had bipartisan backing, was insufficient in combating corruption. Despite the Senate Banking Committee approving the GENIUS Act in March, recent developments prompted Democrats to reconsider. A New York Times report indicated that the Trump family might earn $2 billion from a stablecoin deal with a Dubai-based firm. Additionally, Trump announced a contest rewarding top holders of his meme coin with a private dinner, generating $320 million in trading fees for the issuers.
While acknowledging limited current legal avenues to stop such activities, some Senate Republicans expressed skepticism about the $TRUMP contest. Senator Cynthia Lummis of Wyoming, a Trump ally, offered to collaborate with Democrats on regulating lawmakers’ involvement in digital assets, emphasizing the need for a clearer regulatory framework.
— new from The Verge