A Bill Wants To Ban Crypto For Donald Trump

Some US senators want to ban Donald Trump and senior officials from promoting or holding any cryptocurrencies. The initiative, introduced amid tensions over stablecoin regulation, aims to counter potential conflicts of interest related to crypto projects backed by the current president. Will this political offensive mark the end of Trump’s influence on the crypto market?

Trump: A law targeted against conflicts of interest

Twenty Democratic senators have introduced the “End Crypto Corruption Act“, a legislative proposal aiming to strictly restrict crypto access for the highest state officials. The text prohibits these figures from issuing, promoting, or sponsoring any cryptocurrency during their term and up to one year after leaving office. This measure directly concerns Donald Trump, accused of using his crypto projects for personal purposes, which could lead to his impeachment .

The categories targeted by this law include:

• The President and Vice President of the United States;
• Members of Congress and cabinet members confirmed by the Senate;
• Certain special government employees, such as Elon Musk;
• The spouses and dependent children of these individuals.
  

The bill was introduced on May 7, 2025, at a time when debates on stablecoin legislation were in full swing. The prohibited activities are also explicit:

• Creating or sponsoring a cryptocurrency or digital asset;
• Publicly promoting a crypto, including through social media;
• Using these assets as political or electoral leverage.
  

The catalyst: Donald Trump and the stablecoin business

This hardening follows Donald Trump’s increasing activities in the crypto universe. His alleged involvement in the company World Liberty Financial, which plans to issue stablecoins in partnership with investment funds from Abu Dhabi, is causing controversy. This situation has led Democratic senators to call for an investigation into a suspicious $2 billion transaction involving Binance and a stablecoin backed by the Trump family.

Senators therefore denounce a clear conflict of interest, especially since Trump recently announced that holders of the $TRUMP token would be invited to a dinner at the White House. A use perceived as harmful and lucrative by his detractors, notably Senator Elissa Slotkin, who stated :

We have a crocodile much closer to the boat.

Talking about Trump. This tense political context notably led to the withdrawal of Democratic support for the GENIUS Act, a bill aiming to regulate stablecoins.

The domino effect on crypto regulation

The initiative could mark a turning point in the regulatory framework for the crypto sector in the United States. By targeting political figures directly, it seeks to restore trust in the independence of regulators. For supporters of the bill, it is about preventing leaders from shaping laws while personally profiting from their influence in the crypto sphere.

The potential consequences of this approach include:

• A renewed call for coherent federal regulation of the crypto sector;
• A decrease in the legitimacy of political officials publicly supporting crypto projects;
• A deterrent effect on platforms suspected of colluding with political interests;
• A radicalization of the divide between supporters of a free ecosystem and advocates for strict state control.
  

By targeting Trump, the law draws a new red line between the public sphere and private ambitions in the crypto universe. Senator Elizabeth Warren, a leading figure of strict regulation, sees in this bill an opportunity to curb speculative abuses fueled by private interests disguised under populist rhetoric.

What are the perspectives for the crypto market? A coming fall?

Donald Trump has demonstrated significant influence over the crypto market. His statements often drive prices up, especially during his announcements around memecoins like $TRUMP. If the law passes, markets could lose a major speculative catalyst, in favor of more sober regulation.

Remaining is the question of some supporters’ bitcoin reserves, who see the current president as a sovereign BTC defender. A political sidelining of Trump in the sector could encourage some institutional investors to adopt a wait-and-see, or even retreat posture, in the absence of such an influential pro-crypto media relay.

This bill crystallizes the opposition between strict political regulation and the libertarian vision of crypto. By targeting Donald Trump, the Democrats reaffirm the need for public control. But does this approach curb abuses or stifle innovation? The battle between regulation and crypto freedom is just beginning.