Gillibrand: Crypto Bill Requires Ethics Provision Amid Trump Ties

Sen. Kirsten Gillibrand stated on Wednesday at the Consensus Miami conference that any sweeping cryptocurrency market structure legislation must include an ethics provision, warning there will be no deal without it. The requirement reflects Senate Democrats’ concerns over President Donald Trump and his family’s crypto connections, including memecoins launched by Trump and Melania Trump ahead of the inauguration and the family’s leadership of the DeFi and stablecoin project World Liberty Financial.

Trump’s Crypto Holdings and Scrutiny

Bloomberg has estimated that Trump has earned at least $1.4 billion from his crypto ventures since inauguration. Trump’s crypto interests have faced scrutiny over potential national security and foreign influence risks following an investment tied to the United Arab Emirates, prompting the House to launch a probe into World Liberty Financial.

Gillibrand’s Ethics Mandate

“It is essential — and I want everyone in this room to take this to heart — there will be no one voting for this bill if we don’t have an ethics provision,” Gillibrand said on Wednesday. “The truth is that we cannot allow members of Congress, senior administration officials, presidents, or vice presidents to get rich off these industries because of their insider status.”

Gillibrand stated she is working with both Democrats and Republicans, as well as the White House, to ensure ethics language is included in the bill. “We are working really hard to get the agreement by Republicans and by allies in Congress, and also through the White House so that this provision will be part of this bill, or it will not go forward,” she said. “We cannot let greed and corruption in Washington tear this industry down, and without that provision, that’s exactly what will happen.”

Bill Status and Previous Obstacles

A comprehensive federal cryptocurrency regulation bill has been stalled in the Senate over the past several months. The primary blocker centered on the treatment of stablecoin rewards, which Gillibrand indicated was resolved after Sens. Angela Alsobrooks, D-Md., and Thom Tillis, R-N.C., reached a compromise that could clear the way for a markup this month. Ethics has now emerged as the next hurdle.

Earlier this year, the Senate Agriculture Committee advanced its version of the crypto bill without Democratic support, citing Trump’s crypto interests as a major obstacle. Democrats in that committee proposed amendments that would block the president, vice president, lawmakers, and other federal officials from making certain financial transactions involving digital assets, but these were not included in the final bill.

Senate Banking Committee Chair Tim Scott has said ethics is not within the panel’s jurisdiction, creating a jurisdictional question about where such provisions would be addressed.

Consumer Protection and Timeline

Gillibrand also emphasized a push for consumer protection language in the bill, including provisions around illicit finance and anti-terrorism funding. She indicated that a bill could be passed into law before the August recess.

Coinbase Chief Legal Officer Paul Grewal told The Block at Consensus that he is “very confident” that a crypto market structure bill will pass before the summer ends.