NY Eyes Ban on President, Top Officials Profiting From Crypto

President Donald Trump and top New York officials would face a potential first-in-the-nation state ban on profiting from cryptocurrency businesses while in office under legislation sponsored by a state lawmaker.

State Sen. Zellnor Myrie (D) introduced the bill (S.B. 8214) in response to the president encouraging investments in a cryptocurrency associated with him as well as hosting a dinner for top purchasers of his memecoin at his Virginia golf club.

The legislation would bar the president, governor, lieutenant governor, comptroller, state attorney general, and their close family members from operating businesses that buy and sell virtual currencies in New York.

“This is at the heart of the integrity of our government,” Myrie said in an interview. “We have seen with this president that there has been an explicit outreach for influence over him.”

The measure, introduced May 21, faces significant time constraints as the legislative session ends in mid-June. But it offers Democrats a new way to highlight how Trump is profiting from his office while also possibly boosting Myrie in his bid for New York City mayor ahead of the June 24 Democratic primary.

“Having the opportunity to use the legislative tools to go after corruption and potential lapses in integrity in that office, I think, is something that I plan to carry into City Hall, should the voters have me,” Myrie added about the president.

Assemblymember Jo Anne Simon (D), who told Bloomberg Government she plans to introduce the bill in her chamber this week, said even with the hurdles against passage it was important to highlight the issue because “there’s no time like the present” to place restrictions on the cryptocurrency industry.

“There’s a lot of room for shenanigans,” she said.

Potential $50,000 Daily Fines

Under the measure, offenders would face fines as high as $5,000 per day for each violation.

That penalty would increase to $50,000 per day for individuals who would “willfully or knowingly” violate restrictions, according to the language.

The measure would apply to any covered officials who live in New York or conduct business within its borders, according to the language. Trump has based his crypto businesses outside his native state, likely limiting the effectiveness of any future restrictions implemented in New York. He also changed his primary residence from New York to Florida in 2019.

The measure would take effect in 90 days if signed into law by Gov. Kathy Hochul (D).

‘Constitutional Can of Worms’

Myrie introduced the bill as he seeks to claim the mantle as a top Trump fighter in a Democratic primary field where he trails frontrunner Andrew Cuomo—who resigned as governor amid multiple scandals in 2021. The Brooklyn legislator has consistently polled in single digits behind Cuomo, who surveys have repeatedly shown with roughly 40% support in the crowded field.

The measure could face constitutional questions for applying the ban on the president in addition to state officials according to Albert Fox Cahn, an attorney who advises lawmakers on tech policy issues.

“This bill would open up a constitutional can of worms,” he said in a text message. “New York clearly can regulate its own electeds’ ethics, but trying to regulate the president runs straight into federal preemption.”