Sen. Kirsten Gillibrand on Friday renewed a push to ban members of Congress and their spouses from issuing or promoting crypto “memecoins,” intensifying an ethics fight that has flared since President Donald Trump’s recent crypto disclosure.
The senator’s statement came after a financial filing showing roughly $1.4 billion in crypto-related income tied to the president for 2025 — a disclosure that has renewed concerns about conflicts of interest as lawmakers weigh the CLARITY Act, bipartisan legislation meant to create clearer rules for digital assets in the U.S.
“This is a commonsense requirement that should get broad bipartisan support — public officials and their spouses should not be issuing memecoins,” Gillibrand said. “We cannot let self-dealing destroy an opportunity to strengthen consumer protections, crack down on illicit finance, and expand economic opportunity for the millions of Americans our financial system has left behind.”
Why it matters
- Ethics: Democrats pushing for the CLARITY Act want enforceable limits to prevent elected officials and their families from profiting from crypto assets they could influence through policy. Gillibrand says the president’s disclosure makes those safeguards even more urgent.
- Legislative leverage: Gillibrand said she hopes the CLARITY Act can move through the Senate Banking Committee within about two weeks, but Democrats want unresolved issues addressed — including ethics language — before providing broader support.
- Policy scope: Ongoing talks in the Senate reportedly cover stablecoin yield rules, stronger anti–illicit finance measures, and an explicit ethics clause banning government officials from creating or promoting cryptocurrencies.
Context and controversy
Trump launched a memecoin called TRUMP shortly before his second inauguration; the token became a high-profile political crypto launch. According to the disclosure and subsequent reporting, the project generated hundreds of millions of dollars for entities linked to the Trump family, while many retail buyers later suffered losses after the token plunged from its peak.
Trump has denied any wrongdoing, telling reporters the gains were legal, attributing management of his holdings to outside investment groups and linking his income to broader market gains that benefited many investors.
What’s next
The dispute adds a political dimension to the CLARITY Act’s path through the Senate. While the bill aims to provide clearer regulatory guardrails for digital assets, the push from Democrats for an ethics ban shows Congress may not advance major crypto-market structure reforms without explicit, enforceable limits on officials’ crypto activities.
As Senate debates continue, the inclusion — and language — of an ethics provision could be decisive for whether the CLARITY Act attracts the bipartisan support its sponsors seek.
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