H.R.3573 - Stop Trading, Retention, and Unfair Market Payoffs in Crypto Act of 2025; Stop TRUMP in Crypto Act of 2025 (119th Congress)
Summary
H.R.3573, also known as the Stop TRUMP in Crypto Act of 2025, aims to establish digital asset prohibitions for elected government officials and their families. The bill prevents covered individuals from owning digital assets that allow unilateral control, serving as officers of digital asset issuers, promoting digital assets for compensation, or trading digital assets with non-public information. It also restricts companies from transacting digital assets on behalf of covered individuals and includes penalties for violations.
Expected Effects
If enacted, this bill would restrict the ability of high-ranking government officials and their families from participating in the digital asset market. This could potentially reduce conflicts of interest and increase public trust in government. It may also deter qualified individuals from entering public service due to financial restrictions.
Potential Benefits
- Reduced Conflicts of Interest: Prevents officials from using inside information for personal gain in the digital asset market.
- Increased Public Trust: Demonstrates a commitment to ethical governance and reduces the perception of corruption.
- Fairer Markets: Limits the potential for market manipulation by those with privileged access to information.
- Discourages Profiteering: Curbs the incentive for officials to make decisions based on personal financial interests related to digital assets.
- Promotes Impartiality: Ensures that policy decisions related to digital assets are made without undue influence from personal holdings.
Most Benefited Areas:
Potential Disadvantages
- Potential Overreach: The restrictions may be overly broad, limiting legitimate investment opportunities for covered individuals and their families.
- Discourages Public Service: Qualified individuals may be deterred from entering government service due to financial constraints.
- Enforcement Challenges: Difficulties in monitoring and enforcing the prohibitions, especially regarding indirect participation and beneficial ownership.
- Economic Impact: May negatively impact the digital asset market by reducing participation from well-informed investors.
- Privacy Concerns: The look-through requirements and disclosure obligations could raise privacy concerns for covered individuals.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's constitutionality hinges on whether the restrictions on financial activities are considered an infringement on individual liberties. While the Constitution doesn't explicitly address digital assets, it does protect property rights and freedom of economic activity. However, the government has broad authority to regulate the conduct of its officials to prevent conflicts of interest. The necessary and proper clause (Article I, Section 8) grants Congress the power to enact laws necessary for executing its enumerated powers, which could include regulating the financial activities of government officials to ensure impartiality and integrity.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).