Woofun AI reports that Senator Kirsten Gillibrand has introduced a proposal to bar elected officials and the president from issuing or sponsoring tokens, directly citing the memecoins launched by President Donald Trump and First Lady Melania Trump. The New York lawmaker argues that public officials and their spouses must be prohibited from "issuing or sponsoring their own digital assets" to prevent self-dealing. This restriction is framed as a commonsense requirement designed to protect consumer interests and expand economic opportunity for millions of Americans.

In a Friday notice, Gillibrand stated that Congress should support measures preventing officials from monetizing their insider status through token issuance. As a key negotiator for the Digital Asset Market Clarity (CLARITY) Act in the Senate, she emphasized that no vote on the legislation will occur without resolving these ethical concerns. Although the chamber expected to vote during the Senate's August state work period, delays persist due to fears of officials getting rich off these industries.

Per Woofun AI, the legislative history reveals that during consideration of the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) in 2025, senators removed provisions specifically targeting Trump's ties to the crypto industry. These removed clauses included restrictions on his memecoin Official Trump (TRUMP), which Gillibrand previously noted was likely "illegal based on current law." Trump subsequently signed the GENIUS Act into law in July 2025, despite the lawmaker's warning that addressing all such ethics problems would create a very long and detailed bill.

The scope of Gillibrand's proposed memecoin restriction appears limited, as it does not explicitly extend to other family members beyond the president and spouse. This omission leaves open questions regarding Trump's sons and their involvement in the crypto platform World Liberty Financial and their Bitcoin (BTC) mining company American Bitcoin. While the proposal targets direct issuance by the officeholder, the broader family business ecosystem remains outside the immediate legislative ban.

Financial disclosures reveal that Trump reported earning about $1.4 billion from crypto ventures the same year he took office. This massive financial windfall occurred while he held the power to influence legislation on digital assets, including both the GENIUS Act and the CLARITY Act. The timing of these profits relative to his legislative authority has intensified scrutiny regarding the intersection of public office and private gain.

Despite the ethical scrutiny, Trump maintains there was "nothing illegal" and "nothing wrong" with profiting from his investments as president. He did not directly answer questions about perceived conflicts of interest, leaving the debate over whether such actions undermine public trust unresolved. This marks a significant standoff between legislative ethics reform and executive defense of financial autonomy.