Crypto ethics reform is accelerating as sweeping legislation gains traction to block federal officials from cashing in on digital assets, igniting major momentum in Washington’s crackdown.
Momentum Builds for Crypto Ethics Reform as Lawmakers Target Official Conflicts
Efforts to restrict crypto involvement by federal officials are gaining steam, as lawmakers expand support for ethics-focused legislation amid scrutiny of digital asset conflicts. U.S. Representative Jimmy Panetta (D-CA) announced on July 16 his co-sponsorship of two proposals aimed at tightening rules around cryptocurrency activity by sitting officials.
The Modern Emoluments and Malfeasance Enforcement (MEME) Act, introduced by Rep. Sam Liccardo, and the Stop TRUMP in Crypto Act, introduced by Rep. Maxine Waters, would block high-ranking public officials and their immediate families from promoting, profiting from, or issuing digital assets while in office. Panetta stated:
These bills would ban federal officials from promoting or profiting off crypto schemes while in office, just like we already expect when it comes to stocks or private businesses.
“That’s a basic step to restore some trust and make sure public office is used to serve the public, not enrich yourself,” he added. Supporters of the legislation point to mounting concerns over President Donald Trump’s ties to crypto ventures, including the TRUMP and MELANIA tokens and World Liberty Financial, a platform reportedly controlled in part by the Trump family that distributed more than $50 million to its founders.
The USD1 stablecoin, linked to the same network, has raised additional scrutiny for potential foreign influence and lack of transparency. Proponents argue the proposed laws are designed to close gaps in existing ethics rules and apply modern standards to the fast-growing digital finance space. The lawmaker’s announcement details:
The MEME Act would prohibit the President, Vice President, Members of Congress, senior Executive Branch officials, and their immediate families from issuing, promoting, or profiting from any digital asset, commodity, or security while in office.
“It would also subject violators to criminal and civil penalties. The Stop TRUMP in Crypto Act would bar officials from owning controlling shares in digital assets or companies, preventing insider trading based on nonpublic information, and addressing potential conflicts of interest tied to cryptocurrency,” the announcement notes.
While these accountability bills draw support from consumer advocates, other lawmakers are advancing legislation that aims to clarify and encourage responsible innovation in crypto. The Guiding and Establishing National Innovation in U.S. Stablecoins (GENIUS) Act and the Digital Asset Market Clarity (CLARITY) Act are among the initiatives focused on establishing regulatory frameworks that protect users without stifling growth in the blockchain sector.
Source: Bitcoin
