Sophie Phillips is a Democrat serving Bear in the House of Representatives.
During my time in public office, I have always believed that government is a public trust and not a vehicle for personal profit. That principle should not change simply because the marketplace has evolved. Yet, as Congress debates new crypto legislation, we are watching a familiar problem take on a dangerous new digital form.
The crypto legislation currently under consideration in the U.S. Senate should provide clarity for innovators and protections for consumers. Done wrong, it risks opening the door to unprecedented corruption. At the heart of this debate is a glaring omission: meaningful ethics rules.
Recent reporting from outlets including The New York Times, Forbes and Bloomberg has detailed how Donald Trump and his family have rapidly expanded into cryptocurrency ventures, including NFTs, meme coins and stablecoin-related projects. Some estimates suggest that crypto-related ventures now make up a substantial share of the Trump family’s wealth. These same reports have raised serious concern about the overlap between political influence and personal financial gain. This is not a theoretical concern. It is happening in real time.
While lawmakers and regulators debate how to oversee the crypto industry, a sitting president has direct financial stakes in the outcome. That creates a level of conflict of interest that would be unacceptable in any other sector. Imagine if a public official could shape banking laws while owning a bank or write pharmaceutical regulations while holding major stakes in drug companies. We would never tolerate it. Crypto should be no different.
There is currently little to prevent public officials from promoting or influencing crypto assets they are personally tied to. Even more troubling, there are few protections against foreign actors purchasing or backing those assets in an attempt to curry favor or exert influence. Imagine a scenario in which a foreign government quietly buys millions of dollars’ worth of a cryptocurrency connected to a U.S. public official. That buying could drive up the asset’s value and increase the official’s wealth, all without any transparency about who is behind it or what he or she might expect in return.
The solution is straightforward. Congress must adopt ethics rules as part of any upcoming crypto legislation. That means a clear prohibition on elected officials and senior government personnel from issuing, sponsoring or profiting from cryptocurrency assets while in office. It means full transparency around financial holdings. And it means enforceable penalties for violations. These are not radical ideas. They are the basic safeguards Americans expect from their government.
Cryptocurrency may be new, but the principle at stake is not. Public service should never be a pathway to private enrichment. If we fail to act now, we risk embedding conflicts of interest into the foundation of a new financial system — one that could shape the global economy for decades to come.
The promise of crypto innovation is real. But so is the risk of abuse. Congress has an opportunity and an obligation to get this right. I look to Sen. Lisa Blunt Rochester, D-Del., for her leadership on this issue through her work on the Senate Banking, Housing, and Urban Affairs Committee.
The American people deserve a financial system that works for them, not one that can be manipulated by those in power. In this digital age, ethics rules are not optional. They are essential.
Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org.
