Gillibrand Calls for Memecoin Ban in Crypto Ethics Push

Sen. Kirsten Gillibrand wants a ban on members of Congress and their spouses issuing or promoting crypto memecoins. The New York Democrat made the call in an interview at the Solana Accelerate conference in Miami, saying stricter ethics rules should be in place before legislators proceed with broader crypto laws.

The push follows President Trump's latest financial disclosure, which showed roughly $1.4 billion in crypto income from the $TRUMP memecoin launched just before his second inauguration. The project generated huge profits for the Trumps but has since collapsed 97% from its peak, wiping out retail investors. Trump has defended the gains as legal and said outside managers handle his investments.

The Ethics Flashpoint

Gillibrand said conflict-of-interest rules are more critical now that Trump's disclosure is public. "Public officials should not have a conflict of interest when it comes to making decisions that impact the crypto industry," she told Bloomberg. The debate over ethics has become a central sticking point in negotiations over the Clarity Act, the bipartisan stablecoin bill.

Current discussions center on three main areas: stablecoin yields, anti-money-laundering safeguards, and an ethics clause barring government officials from creating or promoting crypto assets. Gillibrand said Democrats are demanding major issues be addressed before they provide more support. She expressed hope the bill can still move through the Senate Banking Committee in the next two weeks.

The Clarity Act's path to passage hangs on whether the ethics language can win enough Republican support. Some lawmakers see the provision as a necessary guardrail after the Trump memecoin episode; others view it as an overreach that could slow innovation. A markup in the Banking Committee within two weeks would confirm momentum. A delay over the ethics clause would signal the bill faces deeper trouble.

For a trader or a firm watching the legislation, the key variable is whether the ethics clause stays in the final text. If it is narrowed to apply only to elected officials and their immediate families, it could pass with bipartisan backing. If Democrats insist on a broader ban covering staff and appointees, the bill could stall. The committee schedule is the concrete marker to track.