A new bill in the U.S. House of Representatives wants to draw a hard line between the White House and the crypto market. The Stop $TRUMP in Crypto Act of 2025, introduced by Rep. Maxine Waters, would bar the President, the Vice President, Members of Congress, and their immediate families from owning, promoting, or trading digital assets while in office — a proposal that, if it becomes law, would reshape how top government officials can interact with crypto altogether.
Key takeaways
- Rep. Maxine Waters introduced H.R.3573, the Stop $TRUMP in Crypto Act of 2025, on May 21, 2025.
- The bill targets the President, Vice President, Members of Congress, and their spouses, children, and children’s spouses.
- It bans controlling ownership of digital assets, official roles at asset issuers, and promotional compensation tied to crypto sales in the U.S.
- Officials would also be barred from trading digital assets while holding material non-public information about them.
- Indirect ownership through trusts, corporations, or other concealment arrangements is explicitly prohibited, with violations punishable by fines and imprisonment.
Introduction of the Stop $TRUMP in Crypto Act of 2025
The bill’s full name — the Stop Trading, Retention, and Unfair Market Payoffs in Crypto Act of 2025 — spells out its intent in the acronym itself. Rep. Maxine Waters filed the legislation on May 21, 2025, framing it as a direct response to concerns about conflicts of interest between elected office and the fast-growing digital asset market.
At its core, the bill covers not just cryptocurrencies but any “financial contracts, products, or instruments that derive their value from a digital asset.” That broad definition means the restrictions would extend beyond coins and tokens to derivative products built around them, closing off a potential workaround before it could be exploited.
Restrictions on Government Officials and Their Families
The Stop $TRUMP in Crypto Act would impose a wide set of restrictions on a specific group of people: the President, the Vice President, Members of Congress, and their spouses, children, and children’s spouses. None of them would be allowed to hold a stake in a digital asset large enough to let them unilaterally change how that asset works.
That single provision targets a scenario unique to crypto — where large holders sometimes have outsized influence over a token’s protocol or governance decisions, something that has no direct equivalent in traditional stock ownership.
Ban on serving as officers or owners of digital asset issuers
Beyond ownership caps, the bill would prohibit covered officials and their families from serving as an officer, director, or owner of any company that issues digital assets. This closes off a path where a government figure could sit on the board of a crypto issuer while simultaneously shaping the rules that govern the industry.
Limits on issuing, promoting, and receiving compensation
The legislation also bans issuing, sponsoring, promoting, or accepting any direct or indirect compensation tied to the sale, marketing, or mining of a digital asset — as long as that activity happens in the United States or involves a U.S. person. In practice, that would rule out the kind of paid promotional deals or personal-brand token launches that have drawn scrutiny in the broader digital asset regulation debate.
Trading and Insider Information Provisions
One of the most consequential parts of the bill deals with something crypto markets have struggled with for years: insider trading. Under the proposal, covered officials would be barred from trading digital assets while in office if they hold material non-public information about those assets — effectively applying a crypto insider trading ban to the highest levels of government.
This matters because digital asset markets, unlike traditional securities, have historically lacked the same disclosure and trading-restriction infrastructure that governs stocks. A rule like this would bring crypto holdings by senior officials closer to the standards already expected in equity markets.
Closing the loophole on indirect ownership
The bill doesn’t stop at direct holdings. It also blocks indirect engagement through intermediaries such as trusts or corporations, or through any other arrangement designed to conceal an official’s beneficial ownership or control. That provision is aimed squarely at structures that might otherwise let someone maintain a hidden financial interest in a digital asset while publicly appearing to have divested from it.
Penalties for Violations
Individuals found to violate the Stop $TRUMP in Crypto Act would face penalties that include fines and imprisonment, according to the bill’s text. The legislation does not break down specific dollar amounts or sentencing ranges, but the inclusion of criminal penalties alongside financial ones signals an intent to treat violations as more than a regulatory slap on the wrist.
Why This Matters for US Government Crypto Rules
The bill lands at a moment when digital assets have moved from a niche investment to a mainstream political flashpoint. By singling out the President, Vice President, and Members of Congress — along with their immediate families — the legislation treats crypto holdings as a distinct ethics category, separate from the financial disclosure rules that already apply to other assets.
For the crypto industry, a law like this would set a precedent: it would formally recognize digital assets as a category requiring the same conflict-of-interest guardrails long applied to stocks, bonds, and other financial instruments held by public officials. Whether that precedent extends to a broader framework for U.S. government crypto rules beyond this specific bill remains an open question, but the proposal itself signals where at least one wing of Congress wants that conversation to go.
FAQ
Who does the Stop $TRUMP in Crypto Act of 2025 apply to?
It applies to the President, Vice President, Members of Congress, and their spouses, children, and children’s spouses.
What types of activities are government officials banned from under the bill?
They are banned from owning controlling stakes in digital assets, serving as officers or owners of asset issuers, issuing or promoting digital assets, and trading based on material non-public information.
Does the bill ban indirect ownership or control of digital assets?
Yes, it prohibits indirect engagement through intermediaries like trusts or corporations or any other arrangements concealing beneficial ownership or control.
What are the penalties for violating the Stop $TRUMP in Crypto Act of 2025?
Violations may lead to fines and imprisonment.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
