A group of 20 Democratic legislators has introduced a bill that will prevent high-ranking US government officers from founding or supporting cryptocurrencies.
The proposal, titled the End Crypto Corruption Act of 2025, will focus on the rising fear of President Donald Trump’s link with a personal digital currency project.
Upon its introduction on May 7, the bill attempts to exclude the President, Vice President, members of Congress, Senate-confirmed officials, and other federal staff members from promoting or endorsing digital currencies.
The restrictions also apply to the spouses and children dependent on these officials. Additionally, the restrictions would apply during their term in office and for one year afterward.
Although the legislation does not require traditional crypto trading and sales to shut down, it imposes harsh penalties on individuals involved in promotional violations. Those violating the promotion-related laws may face financial penalties or a court proceeding that significantly changes how the government handles conflicts of interest in digital finance.
Meme coins, White House access, and foreign deals raise red flags
The bill comes in the wake of increased interest in the activities of the Trump family in cryptocurrency. Lawmakers have argued that the $TRUMP and $MELANIA tokens were launched not long before the inauguration because they allow for pay-to-play practices and raise national security concerns.
One of the notable issues was a recent invitation by Trump to top holders of the $TRUMP coin to a private White House dinner. Democratic senators argue that the invitation may erode confidence in the government. Senator Jon Ossoff referred to the incident as “gobsmacking,” claiming personal benefit from tokens in office is not acceptable.
Senator Cynthia Lummis, a prominent Republican crypto advocate, also expressed concern. She said Trump’s use of cryptocurrency for direct access to presidential events gave her “pause,” signaling bipartisan discomfort.
Trump’s role as the “Chief Crypto Advocate” at World Liberty Financial (WLFI), a decentralized finance platform his sons co-owned, is under legal review. Recently, WLFI played a critical role in a $2 billion swap between Binance and an Abu Dhabi entity through their WLD1 stablecoin.
In response to the deal, the Senate Democrats called for detailed answers to be provided by Treasury Secretary Scott Bessent and Attorney General Pam Bondi.
Senate crypto agenda stalls as partisan divide widens
This proposal is being made against stalled progress in cryptocurrency regulations. Last week, the GENIUS Act proposed to define a consistent approach to the rule regarding stablecoins failed as the Democrats withdrew their support.
Critics cited the inadequacy of the bill in containing anti-money laundering provisions and inadequate enforcement mechanisms against foreign stablecoin issuers.
Tensions escalated to a new high when Maxine Waters, other Democrats, and Republicans left a bipartisan roundtable meeting over Republicans’ failure to act on Trump’s cryptocurrency-related conflicts of interest.
The End Crypto Corruption Act is similar to earlier House legislation. Sen. Elissa Slotkin, who co-sponsored the bill, characterized Trump’s actions as more of an immediate threat than the more general regulatory problems and highlighted the necessity of currently acting guardrails.
Elon Musk, listed as a special government employee in the Department of Government Efficiency (DOGE), is also part of the bill. Musk clarified that his government position would not involve DOGE the memecoin. However, the fact was still enough to raise speculation about merging his crypto deeds with his government duties.
While the legislation sets clear lines for public officials, some things are left ambiguous. It is still unclear whether the restrictions of the bill extend to Trump’s honorary position at WLFI, as his sons essentially control most facets of the operations. In addition, managing the roles of the family members and corporations in such roles may prove to be problematic in practice.
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