S.2143 - Curbing Officials' Income and Nondisclosure (COIN) Act (119th Congress)
Summary
The Curbing Officials' Income and Nondisclosure (COIN) Act aims to prevent financial exploitation by public office holders, specifically targeting transactions involving digital assets. It amends Title 5 and Title 18 of the United States Code to prohibit covered individuals and their immediate family members from engaging in certain financial transactions related to digital assets, cryptocurrencies, and stablecoins. The bill also introduces civil and criminal penalties for violations and mandates increased ethics disclosures related to digital assets.
Expected Effects
The COIN Act would likely restrict the ability of public officials and their families to profit from the emerging digital asset market. This could lead to greater public trust by reducing potential conflicts of interest. It also introduces new compliance burdens and potential penalties for those covered by the legislation.
Potential Benefits
- Reduced Conflicts of Interest: Prevents public officials from using their positions for personal financial gain in the digital asset market.
- Increased Transparency: Requires greater disclosure of cryptocurrency and digital asset holdings by public officials.
- Enhanced Public Trust: Promotes confidence in government by addressing potential ethical concerns related to digital assets.
- Stricter Penalties: Imposes civil and criminal penalties for prohibited financial transactions, deterring misconduct.
- Updated Ethics Framework: Incorporates regulatory frameworks for digital assets into existing ethics laws.
Potential Disadvantages
- Compliance Burdens: Creates new compliance requirements for public officials and their families, potentially leading to unintentional violations.
- Limited Investment Options: Restricts investment options for covered individuals, potentially impacting their personal financial planning.
- Potential for Overreach: Broad definitions of 'prohibited financial transaction' could inadvertently capture legitimate investment activities.
- Enforcement Challenges: Difficulties in monitoring and enforcing the restrictions on digital asset transactions.
- Economic Impact: May discourage innovation and investment in the digital asset market due to perceived regulatory risks.
Constitutional Alignment
The COIN Act aligns with the principle of preventing corruption and ensuring the integrity of public service. Congress has the power to legislate ethics rules for federal employees under Article I, Section 8 (Necessary and Proper Clause), to ensure proper functioning of the government. The disclosure requirements are consistent with the principle of transparency, though potential privacy concerns could arise, implicating the Fourth Amendment. The penalties prescribed are subject to the Eighth Amendment's prohibition against excessive fines and cruel and unusual punishment.
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).