Kingsport Police Department Vice Detective Cliff Ferguson said officers were conducting surveillance near Maple and Dale streets Friday when they observed a white Cadillac speeding down Maple.
Officers stopped the car near Brooke Street and talked to the vehicle's occupants.
The driver, Robert Hardy, gave officers consent to search his car, and they found approximately 20 grams of cocaine, Ferguson said.
Hardy and his passenger, Patrick Beatty, were both arrested and taken to jail.
Officers seized $2,520 in cash and two cell phones from the men. Ferguson said he believes the money is proceeds from selling the cocaine.
In addition to KPD vice officers, officers from the 2nd Judicial Drug Task Force and Sullivan County Sheriff's Office vice division assisted in the operation.