On May 7, 2025, a group of 20 Democratic senators introduced the “Cryptocurrency Accountability Act of 2025” aimed at preventing conflicts of interest by banning top government officials and their families from issuing or promoting cryptocurrencies and digital assets.

The bill would apply to the President, Vice President, Senate-confirmed officials, special government employees, and their spouses and dependent children. 

The restriction remains in effect for one year after leaving office. Violations could result in serious civil and criminal penalties.

Notably, the bill specifically mentions Elon Musk, who currently serves as a special government employee (SGE) in the newly created Department of Government Efficiency (DOGE). However, regular crypto trading will remain legal.

Targeting Trump’s Crypto Activity

The legislation appears to directly respond to recent crypto ventures involving Donald Trump and his family, including the launch of $TRUMP and $MELANIA memecoins. 

Critics claim these projects raise concerns of foreign influence, corruption, and self-enrichment.

Senator Jon Ossoff told Politico:

“It’s shocking that a sitting president appears to be profiting from a personal cryptocurrency while in office.”
He added that any respectable Congress should investigate such behavior.

Even pro-crypto Republican Senator Cynthia Lummis expressed alarm over reports that $TRUMP token holders would be invited to a private dinner with Donald Trump and receive a guided tour of the White House.

The bill could impact Trump’s ongoing role in World Liberty Financial (WLFI), a DeFi platform partly owned and managed by his sons. WLFI recently facilitated a controversial $2 billion investment from an Abu Dhabi-backed fund into Binance using its WLD1 stablecoin, prompting Democrats to demand answers from Treasury Secretary Scott Bessent and Attorney General Pam Bondi.

Rising Political Tensions Over Crypto

The proposal adds fuel to partisan tensions over cryptocurrency regulation. 

Last week, Democrats led by Maxine Waters walked out of a bipartisan crypto roundtable, citing Republican indifference to Trump’s apparent conflicts of interest.

Additionally, the GENIUS stablecoin bill failed in the Senate after several Democrats withdrew support, citing the need for stronger anti–money laundering safeguards and national security protections.

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